☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
CASTOR MARITIME INC. | ||
(Exact name of Registrant as specified in its charter) | ||
(Translation of | ||
Republic of the Marshall Islands | ||
(Jurisdiction of incorporation or organization) | ||
223 Christodoulou Chatzipavlou Street | ||
Hawaii Royal Gardens | ||
3036 Limassol, Cyprus | ||
(Address of principal executive offices) | ||
Petros Panagiotidis, Chairman, Chief Executive Officer and Chief Financial Officer 223 Christodoulou Chatzipavlou Street, Hawaii Royal Gardens, 3036 Limassol, Phone number: + 357 25 357 767 Fax Number: +357 25 357 796 | ||
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||
Common Shares, $0.001 par value | CTRM | Nasdaq Capital Market | |||
☐ Yes | ☒ No |
☒ Yes | ☐ No |
☒ Yes | ☐ No |
Large accelerated filer ☐ | Accelerated filer ☐ |
Non-accelerated filer ☐ | Emerging Growth Company ☒ |
☒ | U.S. GAAP |
☐ | International Financial Reporting Standards as issued by the International Accounting Standards Board |
☐ | Other |
☐ | Item 17 |
☐ | Item 18 |
☐ Yes | ☒ No |
☐ Yes | ☐ No |
PAGE | ||
1 | ||
ITEM 1. | ||
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ITEM 2. | 1 | |
ITEM 3. | 1 | |
ITEM 4. | ||
ITEM 4A. | ||
ITEM 5. | ||
ITEM 6. | ||
ITEM 7. | ||
ITEM 8. | ||
ITEM 9. | ||
ITEM 10. | ||
ITEM 11. | ||
ITEM 12. | ||
83 | ||
ITEM 13. | ||
ITEM 14. | ||
ITEM 15. | ||
ITEM 16. | 84 | |
ITEM 16A. | ||
ITEM 16B. | ||
ITEM 16C. | ||
ITEM 16D. | ||
ITEM 16E. | ||
ITEM 16F. | ||
ITEM 16G. | ||
ITEM 16H. | ||
ITEM 16I. | 86 | |
86 | ||
ITEM | ||
ITEM 18. | 86 | |
ITEM 19. | 87 |
ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. | KEY INFORMATION |
In U.S. dollars, except for share data | Period from December 13, 2016 to September 30, 2017 | Year ended September 30, 2018 | Three-months ended December 31, 2018 | Year ended December 31, 2019 | Year ended December 31, 2020 | |||||||||||||||
SELECTED STATEMENT OF OPERATIONS DATA | ||||||||||||||||||||
Vessel revenues, net | 2,018,061 | 3,960,822 | 1,111,075 | 5,967,772 | 12,487,692 | |||||||||||||||
Voyage expenses – including related parties | (80,853 | ) | (37,373 | ) | (19,556 | ) | (261,179 | ) | (584,705 | ) | ||||||||||
Vessel operating expenses | (1,194,995 | ) | (1,727,770 | ) | (432,544 | ) | (2,802,991 | ) | (7,447,439 | ) | ||||||||||
General and administrative expenses | ||||||||||||||||||||
- Company administration expenses (including related party) | (58,467 | ) | (109,233 | ) | (22,954 | ) | (378,777 | ) | (1,130,953 | ) | ||||||||||
- Public registration costs | (35,973 | ) | (350,167 | ) | (161,116 | ) | (132,091 | ) | - | |||||||||||
Depreciation & amortization | (182,346 | ) | (637,611 | ) | (177,378 | ) | (897,171 | ) | (1,904,963 | ) | ||||||||||
Provision for doubtful debt | - | - | - | - | (37,103 | ) | ||||||||||||||
Management fees, related parties | (55,500 | ) | (111,480 | ) | (29,440 | ) | (212,300 | ) | (930,500 | ) | ||||||||||
Operating Income | $ | 409,927 | $ | 987,188 | $ | 268,087 | $ | 1,283,263 | $ | 452,029 | ||||||||||
Interest and finance costs – including related party | (532 | ) | (3,393 | ) | (519 | ) | (222,163 | ) | (2,189,577 | ) | ||||||||||
Interest income | - | 4,243 | 7,985 | 31,589 | 34,976 | |||||||||||||||
Gain on derivative financial instruments | 475,530 | - | - | - | - | |||||||||||||||
Foreign exchange (losses)/gains | (7,021 | ) | (8,539 | ) | 89 | (4,540 | ) | (29,321 | ) | |||||||||||
Other, net | 740 | 1,439 | 800 | - | - | |||||||||||||||
Total other income/(expenses), net | 468,717 | (6,250 | ) | 8,355 | (195,114 | ) | (2,183,922 | ) | ||||||||||||
US Source Income Taxes | - | - | - | - | (21,640 | ) | ||||||||||||||
Net income/(loss) | $ | 878,644 | $ | 980,938 | $ | 276,442 | $ | 1,088,149 | $ | (1,753,533 | ) | |||||||||
EARNINGS/(LOSS) PER COMMON SHARE, basic & diluted | $ | 0.35 | $ | (0.28 | ) | $ | (0.30 | ) | $ | 0.31 | $ | (0.03 | ) | |||||||
Weighted average number of common shares outstanding, basic and diluted | 2,400,000 | 2,400,000 | 2,400,000 | 2,662,383 | 67,735,195 | |||||||||||||||
CASH FLOW DATA: | ||||||||||||||||||||
Net Cash Provided by/ (Used in) Operating Activities | $ | 770,749 | $ | 902,706 | $ | 148,106 | $ | 2,311,962 | $ | (2,343,809 | ) | |||||||||
Net Cash Used in Investing Activities | (7,549,281 | ) | - | - | (17,227,436 | ) | (35,472,173 | ) | ||||||||||||
Net Cash Provided by Financing Activities | 7,615,000 | - | - | 18,087,133 | 42,183,946 | |||||||||||||||
SELECTED BALANCE SHEET DATA (as of period/year): | September 30, 2017 | September 30, 2018 | December 31, 2018 | December 31, 2019 | December 31, 2020 | |||||||||||||||
Total current assets | $ | 1,350,983 | $ | 2,110,000 | $ | 2,847,417 | $ | 6,220,897 | $ | 13,564,154 | ||||||||||
Vessel(s), net | 7,366,935 | 7,070,404 | 6,995,350 | 23,700,029 | 58,045,628 | |||||||||||||||
Total assets | 8,717,918 | 9,623,798 | 10,183,837 | 30,420,926 | 74,371,355 | |||||||||||||||
Total current liabilities | 224,274 | 149,216 | 432,813 | 2,982,750 | 10,903,907 | |||||||||||||||
Total long-term debt, including current portion and related party debt, net of unamortized deferred financing fees | - | - | - | 15,757,060 | 18,185,866 | |||||||||||||||
Common stock | 2,400 | 2,400 | 2,400 | 3,318 | 131,212 | |||||||||||||||
Total shareholders' equity | 8,493,644 | 9,474,582 | 9,751,024 | 13,204,011 | 52,383,619 | |||||||||||||||
Shares issued and outstanding | 2,400,000 | 2,400,000 | 2,400,000 | 3,318,112 | 131,212,376 | |||||||||||||||
FLEET PERFORMANCE DATA: | Period from December 13, 2016 to September 30, 2017 | Year ended September 30, 2018 | Three-months ended December 31, 2018 | Year ended December 31, 2019 | Year ended December 31, 2020 | |||||||||||||||
Number of vessels at the end of the year | 1 | 1 | 1 | 3 | 6 | |||||||||||||||
Available days (1) | 216 | 336 | 92 | 545 | 1,219 | |||||||||||||||
Ownership days (2) | 222 | 365 | 92 | 556 | 1,405 | |||||||||||||||
Fleet utilization (3) | 97 | % | 92 | % | 100 | % | 98 | % | 87 | % | ||||||||||
OTHER OPERATIONAL METRICS: | ||||||||||||||||||||
Daily time charter equivalent (or TCE) (4) | $ | 8,969 | $ | 11,677 | $ | 11,864 | $ | 10,471 | $ | 9,765 | ||||||||||
EBITDA (4) | $ | 1,061,522 | $ | 1,617,699 | $ | 446,354 | $ | 2,175,894 | $ | 2,327,671 |
(In U.S. dollars, except for Available days) | For the period ended September 30, 2017 | Year ended September 30, 2018 | Three Months Ended December 31, 2018 | Year ended December 31, 2019 | Year ended December 31, 2020 | |||||||||||||||
Vessel revenues, net | $ | 2,018,061 | $ | 3,960,822 | $ | 1,111,075 | $ | 5,967,772 | $ | 12,487,692 | ||||||||||
Voyage expenses | (80,853 | ) | (37,373 | ) | (19,556 | ) | (261,179 | ) | (584,705 | ) | ||||||||||
Time charter equivalent revenues | 1,937,208 | 3,923,449 | 1,091,519 | 5,706, 593 | 11,902,987 | |||||||||||||||
Available days | 216 | 336 | 92 | 545 | 1,219 | |||||||||||||||
Time charter equivalent (TCE) rate | $ | 8,969 | $ | 11,677 | $ | 11,864 | $ | 10,471 | $ | 9,765 |
Reconciliation of Net Income/(Loss) to EBITDA | ||||||||||||||||||||
Period ended September 30, | Year ended September 30, | Three Months Ended December 31, | Year ended December 31, | Year ended December 31, 2020 | ||||||||||||||||
(In U.S. Dollars) | 2017 | 2018 | 2018 | 2019 | 2020 | |||||||||||||||
Net Income/(Loss) | $ | 878,644 | $ | 980,938 | $ | 276,442 | $ | 1,088,149 | $ | (1,753,533 | ) | |||||||||
Depreciation and amortization | 182,346 | 637,611 | 177,378 | 897,171 | 1,904,963 | |||||||||||||||
Interest and finance costs, net | 532 | (850 | ) | (7,466 | ) | 190,574 | 2,154,601 | |||||||||||||
US Source Income Taxes | - | - | - | - | 21,640 | |||||||||||||||
EBITDA | $ | 1,061,522 | $ | 1,617,699 | $ | 446,354 | $ | 2,175,894 | $ | 2,327,671 |
A. | [Reserved] |
B. | Capitalization and Indebtedness |
C. | Reasons for the Offer and Use of Proceeds |
D. | Risk Factors |
• | vessel casualties; and |
(i) | maintaining a certain minimum level of cash on pledged deposit accounts with the borrowers; |
(ii) | maintaining a certain minimum value ratio at the borrowers’ level, which is the ratio of the aggregate market value of the mortgaged vessels plus the value of any additional security and value of the pledged deposit and/or the value of dry dock reserve accounts to the aggregate principal amounts due under the facilities; |
(iii) | maintaining a dry dock reserve at the borrowers’ level; |
(iv) | not having a ratio of net debt to assets adjusted for the market value of the vessels above a certain level; |
(v) | maintaining a certain level of minimum free cash at Castor Maritime; and |
(vi) | maintaining a trailing 12 months EBITDA to net interest expense ratio at and above a certain level. |
ITEM 4. | INFORMATION ON THE COMPANY |
A. | History and Development of the Company |
B. | Business Overview |
Vessel Name | Year Built | Type of Charter | Capacity (dwt) | Delivered to Castor | Gross Charter Rate ($/day) | Estimated Earliest Charter Expiration | Estimated Latest Charter Expiration | ||||
Panamax | |||||||||||
Magic Nova | 2010 | Period Time Charter | 78,833 | October 2020 | $25,300(1) | October 2022 | February 2023 | ||||
Magic Mars | 2014 | Period Time Charter | 76,822 | September 2021 | $21,500(2) | November 2022 | February 2023 | ||||
Magic Phoenix | 2008 | Period Time Charter | 76,636 | October 2021 | 102% of BPI4TC(3) (4) | September 2022 | December 2022 | ||||
Magic Horizon | 2010 | Trip Time Charter | 76,619 | October 2020 | $20,100(5) | March 2022 | March 2022 | ||||
Magic Moon | 2005 | Trip Time Charter | 76,602 | October 2019 | $25,000 | April 2022 | April 2022 | ||||
Magic P | 2004 | Period Time Charter | 76,453 | February 2017 | $27,500 | April 2022 | July 2022 | ||||
Magic Sun | 2001 | Trip Time Charter | 75,311 | September 2019 | $17,500 plus $750,000 Ballast Bonus | April 2022 | April 2022 | ||||
Magic Vela | 2011 | Trip Time Charter | 75,003 | May 2021 | $16,000 plus $550,000 Ballast Bonus | April 2022 | April 2022 | ||||
Magic Eclipse | 2011 | Period Time Charter | 74,940 | June 2021 | $28,500 | April 2022 | July 2022 | ||||
Magic Pluto | 2013 | Period Time Charter | 74,940 | August 2021 | $24,000(6) | November 2022 | February 2023 | ||||
Magic Callisto | 2012 | Period Time Charter | 74,930 | January 2022 | $27,000(7) | October 2022 | January 2023 | ||||
Magic Rainbow | 2007 | Trip Time Charter | 73,593 | August 2020 | $16,000 | April 2022 | April 2022 | ||||
Kamsarmax | |||||||||||
Magic Venus | 2010 | Trip Time Charter | 83,416 | March 2021 | $16,300 plus $630,000 Ballast Bonus (8) | April 2022 | April 2022 | ||||
Magic Thunder | 2011 | Period Time Charter | 83,375 | April 2021 | 100% of BPI5TC | October 2022 | January 2023 | ||||
Magic Argo | 2009 | Trip Time Charter | 82,338 | March 2021 | $16,600(9) | April 2022 | April 2022 | ||||
Magic Perseus | 2013 | Period Time Charter | 82,158 | August 2021 | 100% of BPI5TC | October 2022 | January 2023 | ||||
Magic Starlight | 2015 | Period Time Charter | 81,048 | May 2021 | $32,000(10) | September 2022 | March 2023 | ||||
Magic Twilight | 2010 | Period Time Charter | 80,283 | April 2021 | $25,000(11) | January 2023 | April 2023 | ||||
Magic Nebula | 2010 | Period Time Charter | 80,281 | May 2021 | $23,500 | September 2022 | November 2022 | ||||
Capesize | |||||||||||
Magic Orion | 2006 | Period Time Charter | 180,200 | March 2021 | 101% of BCI5TC (12) | October 2022 | January 2023 |
(1) | The vessels’ daily gross charter rate is equal to 92% of BPI5TC. In accordance with the prevailing charter party, on 17/02/2022 owners converted the index-linked rate to fixed from 01/03/2022 until 30/09/2022, at a rate of $25,300 per day. Upon completion of said period, the rate will be converted back to index linked. The benchmark vessel used in the calculation of the average of the Baltic Panamax Index 5TC routes is a non-scrubber fitted 82,500mt dwt vessel (Kamsarmax) with specific age, speed - consumption, and design characteristics. |
(2) | The vessels’ daily gross charter rate is equal to 91% of BPI5TC. In accordance with the prevailing charter party, on 20/01/2022 owners converted the index-linked rate to fixed from 01/02/2022 until 30/09/2022, at a rate of $21,500 per day. Upon completion of said period, the rate will be converted back to index linked. |
(3) | The benchmark vessel used in the calculation of the average of the Baltic Panamax Index 4TC routes is a non-scrubber fitted 74,000mt dwt vessel (Panamax) with specific age, speed - consumption, and design characteristics. |
(4) | In accordance with the prevailing charter party, on 03/03/2022 owners converted the index-linked rate to fixed from 01/04/2022 until 30/09/2022, at a rate of $28,100 per day. Upon completion of said period, the rate will be converted back to index linked. |
(5) | Upon completion of current time charter trip, estimated within April, the vessel has been fixed on a time charter period at a gross daily charter rate equal to 103% of the average of Baltic Panamax Index 4TC routes, with a minimum duration of 12 months and a maximum duration of 15 months, at the charterer’s option. |
(6) | The vessels’ daily gross charter rate is equal to 91% of BPI5TC. In accordance with the prevailing charter party, on 08/02/2022 owners converted the index-linked rate to fixed from 01/03/2022 until 30/09/2022, at a rate of $24,000 per day. Upon completion of said period, the rate will be converted back to index linked. |
(7) | The vessels’ daily gross charter rate is equal to 101% of BPI4TC. In accordance with the prevailing charter party, on 22/02/2022 owners converted the index-linked rate to fixed from 01/03/2022 until 30/09/2022, at a rate of $27,000 per day. Upon completion of said period, the rate will be converted back to index linked. |
(8) | Upon completion of current time charter trip, estimated within April, the vessel has been fixed on a time charter period at a gross daily charter rate equal to 100% of the average of Baltic Panamax Index 5TC routes, with a minimum duration of about 13 months and a maximum duration of about 15 months, at the charterer’s option. |
(9) | Upon completion of current time charter trip, estimated within April, the vessel has been fixed on a time charter period at a gross daily charter rate equal to 103% of the average of Baltic Panamax Index 5TC routes, with a minimum duration of 12 months and a maximum duration of 15 months, at the charterer’s option. |
(10) | The vessels’ daily gross charter rate is equal to 114% of BPI4TC. In accordance with the prevailing charter party, on 19/10/2021 owners converted the index-linked rate to fixed from 01/01/2022 until 30/09/2022, at a rate of $32,000 per day. Upon completion of said period, the rate will be converted back to index linked. |
(11) | In accordance with the prevailing charter party, the vessel’s daily gross charter rate is $25,000 per day for the first 30 days and thereafter index-linked at a rate equal to 93% of BPI5TC. |
(12) | The benchmark vessel used in the calculation of the average of the Baltic Capesize Index 5TC routes is a non-scrubber fitted 180,000mt dwt vessel (Capesize) with specific age, speed - consumption, and design characteristics. |
Vessel Name | Year Built | Type of Charter | Capacity (dwt) | Delivered to Castor | Gross Charter Rate ($/day) | Estimated Earliest Charter Expiration | Estimated Latest Charter Expiration | ||||||||||||
Aframax/LR2 | |||||||||||||||||||
Wonder Polaris | 2005 | Voyage | 115,351 | March 2021 | $ | 6,500 | (1) | 31 March 2022 (2) | N/A | ||||||||||
Wonder Sirius | 2005 | Unfixed | 115,341 | March 2021 | N/A | N/A | N/A | ||||||||||||
Wonder Bellatrix | 2006 | Voyage | 115,341 | December 2021 | $ | 21,024 | (1) | 3 April 2022 (2) | N/A | ||||||||||
Wonder Musica | 2004 | Unfixed | 106,290 | June 2021 | N/A | | N/A | N/A | |||||||||||
Wonder Avior | 2004 | Voyage | 106,162 | May 2021 | $ | 7,440 | (1) | 16 April 2022 (2) | N/A | ||||||||||
Wonder Arcturus | 2002 | Unfixed | 106,149 | May 2021 | N/A | N/A | N/A | ||||||||||||
Aframax | |||||||||||||||||||
Wonder Vega | 2005 | Tanker Pool (3) | 106,062 | May 2021 | N/A | N/A | N/A |
(1) | For vessels that are employed on the voyage/spot market, the gross daily charter rate is considered as the Daily TCE Rate on the basis of the expected completion date. |
(2) | Estimated completion date of the voyage. |
(3) | The vessel is currently participating in an unaffiliated tanker pool specializing in the employment of Aframax tanker vessels. |
Vessel Name | Year Built | Type of Charter | Capacity (dwt) | Delivered to Castor | Gross Charter Rate ($/day) | Estimated Earliest Charter Expiration | Estimated Latest Charter Expiration | ||||||||||||
Wonder Mimosa | 2006 | Tanker Pool (1) | 36,718 | May 2021 | N/A | N/A | N/A | ||||||||||||
Wonder Formosa | 2006 | Tanker Pool (1) | 36,660 | June 2021 | N/A | N/A | N/A | ||||||||||||
(1) | The vessel is currently participating in an unaffiliated tanker pool specializing in the employment of Handysize tanker vessels. |
Dry Bulk Carriers | |||||||||||||||
Vessel Name | Vessel Type | DWT | Year Built | Country of Construction | Purchase Price (in million) | Delivery Date | |||||||||
2019 Acquisitions | |||||||||||||||
Magic Sun | Panamax | 75,311 | 2001 | S. Korea | $ | 6.71 | 09/05/2019 | ||||||||
Magic Moon | Panamax | 76,602 | 2005 | Japan | $ | 10.20 | 10/20/2019 | ||||||||
2020 Acquisitions | |||||||||||||||
Magic Rainbow | Panamax | 73,593 | 2007 | China | $ | 7.85 | 08/08/2020 | ||||||||
Magic Horizon | Panamax | 76,619 | 2010 | Japan | $ | 12.75 | 10/09/2020 | ||||||||
Magic Nova | Panamax | 78,833 | 2010 | Japan | $ | 13.86 | 10/15/2020 | ||||||||
2021 Acquisitions | |||||||||||||||
Magic Orion | Capesize | 180,200 | 2006 | Japan | $ | 17.50 | 03/17/2021 | ||||||||
Magic Venus | Kamsarmax | 83,416 | 2010 | Japan | $ | 15.85 | 03/02/2021 | ||||||||
Magic Argo | Kamsarmax | 82,338 | 2009 | Japan | $ | 14.50 | 03/18/2021 | ||||||||
Magic Twilight | Kamsarmax | 80,283 | 2010 | S. Korea | $ | 14.80 | 04/09/2021 | ||||||||
Magic Nebula | Kamsarmax | 80,281 | 2010 | S. Korea | $ | 15.45 | 05/20/2021 | ||||||||
Magic Thunder | Kamsarmax | 83,375 | 2011 | Japan | $ | 16.85 | 04/13/2021 | ||||||||
Magic Eclipse | Panamax | 74,940 | 2011 | Japan | $ | 18.48 | 06/07/2021 | ||||||||
Magic Starlight | Kamsarmax | 81,048 | 2015 | China | $ | 23.50 | 05/23/2021 | ||||||||
Magic Vela | Panamax | 75,003 | 2011 | China | $ | 14.50 | 05/12/2021 | ||||||||
Magic Perseus | Kamsarmax | 82,158 | 2013 | Japan | $ | 21.00 | 08/09/2021 | ||||||||
Magic Pluto | Panamax | 74,940 | 2013 | Japan | $ | 19.06 | 08/06/2021 | ||||||||
Magic Mars | Panamax | 76,822 | 2014 | S. Korea | $ | 20.40 | 09/20/2021 | ||||||||
Magic Phoenix | Panamax | 76,636 | 2008 | Japan | $ | 18.75 | 10/26/2021 | ||||||||
2022 Acquisitions | |||||||||||||||
Magic Callisto | Panamax | 74,930 | 2012 | Japan | $ | 23.55 | 01/04/2022 |
Aframax/LR2 Tankers | |||||||||||||||
2021 Acquisitions | |||||||||||||||
Wonder Polaris | Aframax LR2 | 115,351 | 2005 | S. Korea | $ | 13.60 | 03/11/21 | ||||||||
Wonder Sirius | Aframax LR2 | 115,341 | 2005 | S. Korea | $ | 13.60 | 03/22/21 | ||||||||
Wonder Vega | Aframax | 106,062 | 2005 | S. Korea | $ | 14.80 | 05/21/21 | ||||||||
Wonder Avior | Aframax LR2 | 106,162 | 2004 | S. Korea | $ | 12.00 | 05/27/21 | ||||||||
Wonder Arcturus | Aframax LR2 | 106,149 | 2002 | S. Korea | $ | 10.00 | 05/31/21 | ||||||||
Wonder Musica | Aframax LR2 | 106,290 | 2004 | S. Korea | $ | 12.00 | 06/15/21 | ||||||||
Wonder Bellatrix | Aframax LR2 | 115,341 | 2006 | S. Korea | $ | 18.15 | 12/23/21 |
Handysize Tankers | |||||||||||||||
2021 Acquisitions | |||||||||||||||
Wonder Mimosa | Handysize | 36,718 | 2006 | S. Korea | $ | 7.25 | 05/31/21 | ||||||||
Wonder Formosa | Handysize | 36,660 | 2006 | S. Korea | $ | 8.00 | 06/22/21 |
Vessel Name | Year Built | Type of Charter | Capacity (dwt) | Delivered to Castor | Gross Charter Rate ($/day) | Estimated Earliest Charter Expiration | Estimated Latest Charter Expiration |
Dry bulk vessels | |||||||
Panamax | |||||||
Magic P | 2004 | Period Time Charter | 76,453 | February 2017 | $12,750 | August 2021 | November 2021 |
Magic Sun | 2001 | Period Time Charter | 75,311 | September 2019 | $10,200 | August 2021 | October 2021 |
Magic Moon | 2005 | Period Time Charter | 76,602 | October 2019 | $10,500 | July 2021 | September 2021 |
Magic Rainbow | 2007 | Trip Time Charter | 73,593 | August 2020 | $18,500 | April 2021 | April 2021 |
Magic Horizon | 2010 | Period Time Charter | 76,619 | October 2020 | $11,000 | August 2021 | December 2021 |
Magic Nova | 2010 | Period Time Charter | 78,833 | October 2020 | $10,400 | April 2021 | August 2021 |
Kamsarmax | |||||||
Magic Venus | 2010 | Period Time Charter | 83,416 | March 2021 | $18,500 | August 2021 | October 2021 |
Magic Argo | 2009 | Trip Time Charter | 82,338 | March 2021 | $25,100 | June 2021 | June 2021 |
Capesize | |||||||
Magic Orion | 2006 | Trip Time Charter | 180,200 | March 2021 | $21,000 | April 2021 | April 2021 |
Tanker vessels | |||||||
Aframax/LR2 | |||||||
Wonder Polaris | 2005 | Period Time Charter | 115,341 | March 2021 | $15,000 + profit sharing | February 2022 | February 2023 |
Wonder Sirius | 2005 | Period Time Charter | 115,340 | March 2021 | $15,000 + profit sharing | February 2022 | February 2023 |
C. | Organizational Structure |
D. | Property, Plants and Equipment |
ITEM 4A. | UNRESOLVED STAFF COMMENTS |
ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
A. | Operating Results |
- | The levels of demand and supply of seaborne cargoes and vessel tonnage in the dry bulk and tanker shipping industries; |
The cyclical nature of the shipping industry in general and its impact on charter rates and vessel |
- | The successful implementation of the Company’s growth business strategy, including our ability to obtain equity and debt financing at acceptable and attractive terms to fund future capital expenditures and/or to implement our |
- |
- | Economic, regulatory, political and governmental conditions that affect shipping and the dry-bulk and tanker industries; |
- | The employment and operation of our |
- | Our ability to successfully employ our vessels at economically attractive rates and our strategic decisions regarding the employment mix of our fleet in the time, voyage, and pool charter markets, as our charters expire or are otherwise terminated; |
- | Management of the financial, general and administrative elements involved in the conduct of our business and ownership of our |
- | The number of charterers who use our services and the performance of |
- | Our ability to maintain solid working relationships with our existing charterers and our ability to increase the number of our charterers through the development of new working relationships; |
- | The |
Dry-docking and special survey |
- | The level of any distribution on all classes of our |
- | Our borrowing levels and the |
- |
Management of our financial resources, including banking relationships and of the relationships with our various |
- | Major outbreaks of diseases (such as COVID-19) and governmental responses thereto. |
For the year ended | ||||||||
December 31, 2019 | December 31, 2020 | |||||||
Operational Metrics | ||||||||
Available days | 545 | 1,219 | ||||||
Ownership days | 556 | 1,405 | ||||||
Fleet utilization | 98 | % | 87 | % | ||||
Daily time charter equivalent (or TCE) | $ | 10,471 | $ | 9,765 | ||||
Daily vessel operating expenses | $ | 5,041 | $ | 5,301 | ||||
Daily management fees | $ | 382 | $ | 662 | ||||
Daily general and administrative expenses | $ | 681 | $ | 805 | ||||
EBITDA (1) | $ | 2,175,894 | $ | 2,327,671 |
(In U.S. Dollars, except for share and per share data) | Year ended December 31, 2019 | Year ended December 31, 2020 | Change -amount | Change-% | ||||||||||||
Vessel revenues (net of charterers' commissions) | 5,967,772 | 12,487,692 | 6,519,920 | 109.3 | % | |||||||||||
Expenses: | ||||||||||||||||
Voyage expenses (including commissions from related parties) | (261,179 | ) | (584,705 | ) | 323,526 | 123.9 | % | |||||||||
Vessel operating expenses | (2,802,991 | ) | (7,447,439 | ) | 4,644,448 | 165.7 | % | |||||||||
Management fees to related parties | (212,300 | ) | (930,500 | ) | 718,200 | 338.3 | % | |||||||||
General and administrative expenses | ||||||||||||||||
• Company administration expenses (including administrations costs from related party) | (378,777 | ) | (1,130,953 | ) | 752,176 | 198.6 | % | |||||||||
• Public registration costs | (132,091 | ) | — | (132,091 | ) | (100 | )% | |||||||||
Provision for doubtful debt | — | (37,103 | ) | 37,103 | 100 | % | ||||||||||
Depreciation and amortization | (897,171 | ) | (1,904,963 | ) | 1,007,792 | 112.3 | % | |||||||||
Operating income | 1,283,263 | 452,029 | (831,234 | ) | (64.8 | )% | ||||||||||
Interest and finance costs, net (including interest costs from related party) | (190,574 | ) | (2,154,601 | ) | 1,964,027 | 1,030.6 | % | |||||||||
Total Other Income / (expenses), net | (195,114 | ) | (2,183,922 | ) | 1,988,808 | 1,019.3 | % | |||||||||
US Source Income Taxes | — | (21,640 | ) | — | 100 | % | ||||||||||
Net income/ (loss) and comprehensive income/ (loss) | 1,088,149 | (1,753,533 | ) | (2,841,682 | ) | (261.1 | )% | |||||||||
Earnings/ (Loss) per common share, basic and diluted | 0.31 | (0.03 | ) | |||||||||||||
Weighted average number of common shares, basic and diluted | 2,662,383 | 67,735,195 |
Year Ended December 31, | ||||||||
(In U.S. dollars, except for Available Days) | 2020 | 2021 | ||||||
Vessel revenues, net | $ | 12,487,692 | $ | 132,049,710 | ||||
Voyage expenses -including commissions from related parties | (584,705 | ) | (12,950,783 | ) | ||||
TCE revenues | $ | 11,902,987 | $ | 119,098,927 | ||||
Available Days | 1,267 | 6,657 | ||||||
Daily TCE Rate | $ | 9,395 | $ | 17,891 |
Year Ended December 31, | ||||||||
(In U.S. dollars, except for Available Days) | 2020 | 2021 | ||||||
Vessel revenues, net | $ | 12,487,692 | $ | 102,785,442 | ||||
Voyage expenses -including commissions from related parties | (584,705 | ) | (1,891,265 | ) | ||||
TCE revenues | $ | 11,902,987 | $ | 100,894,177 | ||||
Available Days | 1,267 | 4,843 | ||||||
Daily TCE Rate | $ | 9,395 | $ | 20,833 |
(In U.S. dollars, except for Available Days) | 2021 | |||
Vessel revenues, net | $ | 26,559,413 | ||
Voyage expenses -including commissions from related parties | (11,003,925 | ) | ||
TCE revenues | $ | 15,555,488 | ||
Available Days | 1,446 | |||
Daily TCE Rate | $ | 10,758 |
(In U.S. dollars, except for Available Days) | 2021 | |||
Vessel revenues, net | $ | 2,704,855 | ||
Voyage expenses -including commissions from related parties | (55,593 | ) | ||
TCE revenues | $ | 2,649,262 | ||
Available Days | 368 | |||
Daily TCE Rate | $ | 7,199 |
Year Ended December 31, | ||||||||
2020 | 2021 | |||||||
Daily vessel operating expenses | $ | 5,301 | $ | 5,759 | ||||
Ownership Days | 1,405 | 6,807 | ||||||
Available Days | 1,267 | 6,657 | ||||||
Operating Days | 1,259 | 6,562 | ||||||
Fleet Utilization | 99 | % | 99 | % | ||||
Daily TCE Rate | $ | 9,395 | $ | 17,891 | ||||
EBITDA | $ | 2,327,671 | $ | 69,910,529 |
Year Ended December 31, | ||||||||
2020 | 2021 | |||||||
Daily vessel operating expenses | $ | 5,301 | $ | 5,418 | ||||
Ownership Days | 1,405 | 4,954 | ||||||
Available Days | 1,267 | 4,843 | ||||||
Operating Days | 1,259 | 4,766 | ||||||
Fleet Utilization | 99 | % | 98 | % | ||||
Daily TCE Rate | $ | 9,395 | $ | 20,833 |
Year Ended December 31, | ||||
2021 | ||||
Daily vessel operating expenses | $ | 6,761 | ||
Ownership Days | 1,446 | |||
Available Days | 1,446 | |||
Operating Days | 1,428 | |||
Fleet Utilization | 99 | % | ||
Daily TCE Rate | $ | 10,758 |
Year Ended December 31, | ||||
2021 | ||||
Daily vessel operating expenses | $ | 6,352 | ||
Ownership Days | 407 | |||
Available Days | 368 | |||
Operating Days | 368 | |||
Fleet Utilization | 100 | % | ||
Daily TCE Rate | $ | 7,199 |
Year Ended December 31, | ||||||||
(In U.S. dollars) | 2020 | 2021 | ||||||
Net Income/(Loss) | $ | (1,753,533 | ) | $ | 52,270,487 | |||
Depreciation and amortization | 1,904,963 | 14,362,828 | ||||||
Interest and finance costs, net (including related party interest costs) (1) | 2,154,601 | 2,779,875 | ||||||
US source income taxes | 21,640 | 497,339 | ||||||
EBITDA | $ | 2,327,671 | $ | 69,910,529 |
(1) | Includes interest and finance costs and interest income, if any. |
(In U.S. Dollars, except for share data) | Year ended December 31, 2020 | Year ended December 31, 2021 | Change- amount | Change % | ||||||||||||
Vessel revenues (net of charterers’ commissions) | 12,487,692 | 132,049,710 | 119,562,018 | 957.4 | % | |||||||||||
Expenses: | ||||||||||||||||
Voyage expenses (including commissions to related party) | (584,705 | ) | (12,950,783 | ) | 12,366,078 | 2,114.9 | % | |||||||||
Vessel operating expenses | (7,447,439 | ) | (39,203,471 | ) | 31,756,032 | 426.4 | % | |||||||||
Management fees to related parties | (930,500 | ) | (6,744,750 | ) | 5,814,250 | 624.9 | % | |||||||||
Depreciation and amortization | (1,904,963 | ) | (14,362,828 | ) | 12,457,865 | 654.0 | % | |||||||||
Provision for doubtful accounts | (37,103 | ) | (2,483 | ) | (34,620 | ) | (93.3 | %) | ||||||||
General and administrative expenses (including related party) | (1,130,953 | ) | (3,266,310 | ) | 2,135,357 | 188.8 | % | |||||||||
Operating income | 452,029 | 55,519,085 | 55,067,056 | 12,182.2 | % | |||||||||||
Interest and finance costs, net (including interest costs from related party) | (2,154,601 | ) | (2,779,875 | ) | 625,274 | 29.0 | % | |||||||||
Total other expenses, net | (2,183,922 | ) | (2,751,259 | ) | 567,337 | 26.0 | % | |||||||||
US source income taxes | (21,640 | ) | (497,339 | ) | 475,699 | 2,198.2 | % | |||||||||
Net (loss)/income and comprehensive (loss)/income | (1,753,533 | ) | 52,270,487 | 54,024,020 | 3,080.9 | % | ||||||||||
(Loss)/ Earnings per common share, basic | (0.26 | ) | 0.48 | |||||||||||||
(Loss)/ Earnings per common share, diluted | (0.26 | ) | 0.47 | |||||||||||||
Weighted average number of common shares, basic | 6,773,519 | 83,923,435 | ||||||||||||||
Weighted average number of common shares, diluted | 6,773,519 | 85,332,728 |
(In U.S. Dollars, except for share data) | Year ended December 31, 2020 | Year ended December 31, 2021 | Change-amount | Change % | ||||||||||||
Vessel revenues (net of charterers’ commissions) | 12,487,692 | 102,785,442 | 90,297,750 | 723.1 | % | |||||||||||
Expenses: | ||||||||||||||||
Voyage expenses (including commissions to related party) | (584,705 | ) | (1,891,265 | ) | 1,306,560 | 223.5 | % | |||||||||
Vessel operating expenses | (7,447,439 | ) | (26,841,600 | ) | 19,394,161 | 260.4 | % | |||||||||
Management fees to related parties | (930,500 | ) | (4,890,900 | ) | 3,960,400 | 425.6 | % | |||||||||
Depreciation and amortization | (1,904,963 | ) | (10,528,711 | ) | 8,623,748 | 452.7 | % | |||||||||
Provision for doubtful accounts | (37,103 | ) | (2,483 | ) | (34,620 | ) | (93.3 | % ) | ||||||||
Operating income (1) | 1,582,982 | 58,630,483 | 57,047,501 | 3,603.8 | % |
(1) | Does not include corporate general and administrative expenses. See the discussion under “Consolidated Results of Operations” above. |
(In U.S. Dollars, except for share data) | Year ended December 31, 2020 | Year ended December 31, 2021 | Change -amount | Change % | ||||||||||||
Vessel revenues (net of charterers’ commissions) | — | 26,559,413 | 26,559,413 | 100.0 | % | |||||||||||
Expenses: | ||||||||||||||||
Voyage expenses (including commissions to related party) | — | (11,003,925 | ) | (11,003,925 | ) | 100.0 | % | |||||||||
Vessel operating expenses | — | (9,776,724 | ) | (9,776,724 | ) | 100.0 | % | |||||||||
Management fees to related parties | — | (1,433,950 | ) | (1,433,950 | ) | 100.0 | % | |||||||||
Depreciation and amortization | — | (3,087,764 | ) | (3,087,764 | ) | 100.0 | % | |||||||||
Operating income | — | 1,257,050 | 1,257,050 | 100.0 | % |
(1) | Does not include corporate general and administrative expenses. See the discussion under “Consolidated Results of Operations” above. |
(In U.S. Dollars, except for share data) | Year ended December 31, 2020 | Year ended December 31, 2021 | Change -amount | Change % | ||||||||||||
Vessel revenues (net of charterers’ commissions) | — | 2,704,855 | 2,704,855 | 100.0 | % | |||||||||||
Expenses: | ||||||||||||||||
Voyage expenses (including commissions to related party) | — | (55,593 | ) | (55,593 | ) | 100.0 | % | |||||||||
Vessel operating expenses | — | (2,585,147 | ) | (2,585,147 | ) | 100.0 | % | |||||||||
Management fees to related parties | — | (419,900 | ) | (419,900 | ) | 100.0 | % | |||||||||
Depreciation and amortization | — | (746,353 | ) | (746,353 | ) | 100.0 | % | |||||||||
Operating loss | — | (1,102,138 | ) | (1,102,138 | ) | 100.0 | % |
(1) | Does not include corporate general and administrative expenses. See the discussion under “Consolidated Results of Operations” above. |
B. | Liquidity and Capital Resources |
For the year ended | ||||||||
(In US Dollars) | December 31, 2019 | December 31, 2020 | ||||||
Net cash provided by/ (used in) operating activities | 2,311,962 | (2,343,809 | ) | |||||
Net cash used in investing activities | (17,227,436 | ) | (35,472,173 | ) | ||||
Net cash provided by financing activities | 18,087,133 | 42,183,946 |
(in U.S Dollars) | For the year ended | |||||||
December 31, 2020 | December 31, 2021 | |||||||
Net cash (used in)/provided by operating activities | (2,343,809 | ) | 60,775,327 | |||||
Net cash used in investing activities | (35,472,173 | ) | (348,640,707 | ) | ||||
Net cash provided by financing activities | 42,183,946 | 321,824,945 |
C. | Research and Development, Patents and Licenses, Etc. |
D. | Trend Information |
E. |
Payments due by period | ||||||||||||||||||||
Obligations | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
Long-term debt | $ | 18,450,000 | $ | 7,200,000 | $ | 4,400,000 | $ | 6,850,000 | $ | - | ||||||||||
Interest on long-term debt (1) | 1,539,058 | 557,163 | 744,892 | 237,003 | - | |||||||||||||||
Administration fees - Castor Ships (2) | 5,600,000 | 1,200,000 | 2,400,000 | 2,000,000 | - | |||||||||||||||
Management fees- Pavimar & Castor Ships (2) | 8,690,400 | 1,861,500 | 3,723,000 | 3,105,900 | - | |||||||||||||||
Capital expenditures related to BWMS purchases (3) | 849,122 | 495,871 | 353,251 | - | - | |||||||||||||||
Total | $ | 35,128,580 | $ | 11,314,534 | $ | 11,621,143 | $ | 12,192,903 | $ | - |
Vessels | Date acquired | Carrying value as of December 31, 2020 (in millions of United States dollars) | Carrying value as of December 31, 2019 (in millions of United States dollars) | ||||||
Magic P | 21/02/2017 | $ | 6.8 | $ | 6.7 | ||||
Magic Sun | 05/09/2019 | $ | 6.9 | * | $ | 6.8 | |||
Magic Moon | 20/10/2019 | $ | 9.6 | * | $ | 10.2 | |||
Magic Rainbow | 08/08/2020 | $ | 8.0 | $ | - | ||||
Magic Horizon | 09/10/2020 | $ | 12.9 | $ | - | ||||
Magic Nova | 15/10/2020 | $ | 13.8 | $ | - | ||||
Total | $ | 58.0 | $ | 23.7 |
ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
A. | Directors and Senior Management |
Name | Age | Position | |||
Petros Panagiotidis | 32 | Chairman, Chief Executive Officer, Chief Financial Officer, President, Treasurer and Class C Director | |||
Dionysios Makris | 41 | Secretary and Class B Director | |||
Georgios Daskalakis | 32 | Class A Director |
B. | Compensation |
C. | Board Practices |
D. | Employees |
E. | Share Ownership |
ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. | Major Shareholders |
Name of Beneficial Owner | No. of Common Shares | Percentage | ||||||
All executive officers and directors as a group (1) (2) | - | - | % |
B. | Related Party Transactions |
C. | Interests of Experts and Counsel |
ITEM 8. | FINANCIAL INFORMATION |
A. | Consolidated Statements and other Financial Information |
B. | Significant Changes |
ITEM 9. | THE OFFER AND LISTING |
A. | Offer and Listing Details |
B. | Plan of Distribution |
C. | Markets |
D. | Selling Shareholders |
E. | Dilution |
F. | Expenses of the Issue |
ITEM 10. | ADDITIONAL INFORMATION |
A. | Share Capital |
B. | Memorandum and Articles of Association |
• | Conversion. The Series B Preferred Shares are not convertible into common shares. |
• | Voting. Each Series B Preferred Share has the voting power of 100,000 common shares and count for 100,000 votes for purposes of determining quorum at a meeting of shareholders. The Series B Preferred Share vote together with common shares as a class, except that the Series B Preferred Shares vote separately as a class on amendments to the Articles of Incorporation that would materially alter or change the powers, preference or special rights of the Series B Preferred Shares. |
• | Distributions. The Series B Preferred Shares have no dividend or distribution rights. |
• | Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution or winding up of the Company, the Series B Preferred Shares shall have the same liquidation rights as the common shares. |
C. | Material Contracts |
D. | Exchange Controls |
E. | Taxation |
F. | Dividends and Paying Agents |
G. | Statement by Experts |
H. | Documents on Display |
I. | Subsidiary Information |
ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
ITEM 15. | CONTROLS AND PROCEDURES |
A. | Disclosure Controls and Procedures |
B. |
C. | Attestation Report of the Registered Public Accounting Firm |
D. | Changes in Internal Control Over Financial Reporting |
ITEM 16. | RESERVED |
ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. | CODE OF ETHICS |
ITEM 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
For the year ended | For the year ended | |||||||||||||||
In U.S. dollars | December 31, 2019 | December 31, 2020 | December 31, 2020 | December 31, 2021 | ||||||||||||
Audit Fees | 140,385 | 188,750 | 188,750 | 367,000 |
ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PERSONS. |
ITEM 16F. | CHANGE IN REGISTRANT`S CERTIFYING ACCOUNTANT. |
ITEM 16G. | CORPORATE GOVERNANCE |
• | Independence of Directors. The Nasdaq requires that a U.S. listed company maintain a majority of independent directors. While our Board is currently comprised of three directors a majority of whom are independent, we cannot assure you that in the future we will have a majority of independent directors. |
• | Executive Sessions. The Nasdaq requires that non-management directors meet regularly in executive sessions without management. The Nasdaq also requires that all independent directors meet in an executive session at least once a year. As permitted under Marshall Islands law and our bylaws, our non-management directors do not regularly hold executive sessions without management. |
• | Nominating/Corporate Governance Committee. The Nasdaq requires that a listed U.S. company have a nominating/corporate governance committee of independent directors and a committee charter specifying the purpose, duties and evaluation procedures of the committee. As permitted under Marshall Islands law and our bylaws, we do not currently have a nominating or corporate governance committee. |
• | Compensation Committee. The Nasdaq requires U.S. listed companies to have a compensation committee composed entirely of independent directors and a committee charter addressing the purpose, responsibility, rights and performance evaluation of the committee. As permitted under Marshall Islands law, we do not currently have a compensation committee. To the extent we establish such committee in the future, it may not consist of independent directors, entirely or at all. |
• | Audit Committee. The Nasdaq requires, among other things, that a listed U.S. company have an audit committee with a minimum of three members, all of whom are independent. As permitted by Nasdaq Rule 5615(a)(3), we follow home country practice regarding audit committee composition and therefore our audit committee consists of two independent members of our Board, Mr. Georgios Daskalakis and Mr. Dionysios Makris. Although the members of our audit committee are independent, we are not required to ensure their independence under Nasdaq Rule 5605(c)(2)(A) subject to compliance with Rules 10A-3(b)(1) and 10A-3(c) under the Securities Exchange Act of 1934. |
• | Shareholder Approval Requirements. The Nasdaq requires that a listed U.S. company obtain prior shareholder approval for certain issuances of authorized stock or the approval of, and material revisions to, equity compensation plans. As permitted under Marshall Islands law and our bylaws, we do not seek shareholder approval prior to issuances of authorized stock or the approval of and material revisions to equity compensation plans. |
• | Corporate Governance Guidelines. The Nasdaq requires U.S. companies to adopt and disclose corporate governance guidelines. The guidelines must address, among other things: director qualification standards, director responsibilities, director access to management and independent advisers, director compensation, director orientation and continuing education, management succession and an annual performance evaluation of the Board. We are not required to adopt such guidelines under Marshall Islands law and we have not adopted such guidelines. |
ITEM 16H. | MINE SAFETY DISCLOSURE |
ITEM 16I. | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
ITEM 17. | FINANCIAL STATEMENTS |
ITEM 18. | FINANCIAL STATEMENTS |
ITEM 19. | EXHIBITS |
Articles of Amendment to the Articles of Incorporation of the Company, as amended, filed with the Registry of the Marshall Islands on May 27, 2021 incorporated by reference to Exhibit 99.1 to Amendment No. 2 to Form 8-A filed with the SEC on May 28, 2021. | |
Bylaws of the Company incorporated by reference to Exhibit 3.2 to the | |
May 28, 2021. | |
Form of Pre-Funded warrant incorporated by reference to Exhibit 4.9 of Amendment No. 2 to the Company’s registration statement on Form F-1 filed with the SEC on June 23, 2020. | |
Stockholder Rights Agreement dated as of November 20, 2017 by and between the Company and American Stock Transfer & Trust Company, LLC, as rights agent incorporated by reference to Exhibit 10.2 to the | |
Amended and Restated Statement of Designations of Rights, Preferences and Privileges of Series C Participating Preferred Stock of Castor Maritime Inc., filed with the Registrar of Corporations of the Republic of the Marshall Islands on March 30, 2022. | |
Securities Purchase Agreement by and between the Company and YAII PN, Ltd. dated January 27, 2020 incorporated by reference to Exhibit 10.1 of the |
March 3, 2021. | |
borrowers, incorporated by reference to Exhibit 4.15 of the Company’s annual report on Form 20-F filed with the SEC on March 3, 2021. | |
borrowers. | |
$40.75 Million Term Loan Facility, dated July 23, 2021, by and among Hamburg Commercial Bank AG and the banks and financial institutions listed in Schedule 1 thereto, and Liono Shipping Co., Snoopy Shipping Co., Cinderella Shipping Co., and Luffy Shipping Co., as borrowers. | |
$23.15 Million Term Loan Facility, dated November 22, 2021, by and among Chailease International Financial Services Co., Ltd., as lender, and Bagheera Shipping Co. and Garfield Shipping Co., as borrowers. | |
$55.0 Million Term Loan Facility, dated January 12, 2022, by and among Deutsche Bank AG, as lender, and Mulan Shipping Co., Johnny Bravo Shipping Co., Songoku Shipping Co., Asterix Shipping Co. and Stewie Shipping Co., as borrowers. | |
Master Management Agreement, dated September 1, 2020, by and among the Company, its shipowning subsidiaries and Castor Ships S.A., incorporated by reference to Exhibit 99.3 of the |
Securities Purchase Agreement by and between the Company and the purchasers identified on the signature pages thereto, dated December 30, 2020, incorporated by reference to Exhibit 4.2 of the Company’s report on Form 6-K furnished with the SEC on January 5, 2021. | |
Securities Purchase Agreement by and between the Company and the purchasers identified on the signature pages thereto, dated January 8, 2021, incorporated by reference to Exhibit 4.2 of the Company’s report on Form 6-K furnished with the SEC on January 12, 2021. | |
Securities Purchase Agreement by and between the Company and the purchasers identified on the signature pages thereto, dated April 5, 2021, incorporated by reference to Exhibit 4.2 of the Company’s report on Form 6-K furnished with the SEC on April 7, 2021. | |
Amended and Restated Equity Distribution Agreement, dated March 31, 2022, by and among the Company and Maxim Group LLC, incorporated by reference to Exhibit 1.3 of Amendment No. 1 to the Company’s registration statement on Form F-3 filed with the SEC on March 31, 2022. | |
Subsidiaries. | |
Firm. | |
101.INS | Inline XBRL Instance Document |
101.SCH | Inline XBRL Taxonomy Extension Schema Document |
101.CAL | Inline XBRL Taxonomy Extension Schema Calculation Linkbase Document |
101.DEF | Inline XBRL Taxonomy Extension Schema Definition Linkbase Document |
101.LAB | Inline XBRL Taxonomy Extension Schema Label Linkbase Document |
101.PRE | Inline XBRL Taxonomy Extension Schema Presentation Linkbase Document |
104 | Cover Page Interactive Data File (Inline XBRL) |
CASTOR MARITIME INC. | ||
/s/ Petros Panagiotidis | March | |
Name: Petros Panagiotidis | ||
Title: Chairman, Chief Executive Officer and Chief Financial Officer |
Page | |
Report of Independent Registered Public Accounting Firm (PCAOB ID 1163) | F-2 |
F-3 | |
F-4 | |
F-5 | |
F-6 | |
F-7 |
CASTOR MARITIME INC. | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
December 31, 2019 and 2020 | ||||||||||||
(Expressed in U.S. Dollars – except for share data) | ||||||||||||
ASSETS | December 31, | December 31, | ||||||||||
CURRENT ASSETS: | Note | 2019 | 2020 | |||||||||
Cash and cash equivalents | $ | 4,558,939 | $ | 8,926,903 | ||||||||
Accounts receivable trade, net | 216,485 | 1,302,218 | ||||||||||
Due from related party | 3 | 759,386 | 1,559,132 | |||||||||
Inventories | 143,534 | 714,818 | ||||||||||
Prepaid expenses and other assets | 375,255 | 1,061,083 | ||||||||||
Deferred charges, net | 167,298 | — | ||||||||||
Total current assets | 6,220,897 | 13,564,154 | ||||||||||
NON-CURRENT ASSETS: | ||||||||||||
Vessels, net | 5 | 23,700,029 | 58,045,628 | |||||||||
Restricted cash | 6 | 500,000 | 500,000 | |||||||||
Prepaid expenses and other assets, non-current | 6 | — | 200,000 | |||||||||
Deferred charges, net | 4 | — | 2,061,573 | |||||||||
Total non-current assets | 24,200,029 | 60,807,201 | ||||||||||
Total assets | $ | 30,420,926 | $ | 74,371,355 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Current portion of long-term debt, net | 6 | 1,522,895 | 2,102,037 | |||||||||
Current portion of long-term debt, related party | 3, 6 | — | 5,000,000 | |||||||||
Accounts payable | 410,592 | 2,078,695 | ||||||||||
Due to related party, current | 3 | — | 1,941 | |||||||||
Deferred revenue, net | 493,015 | 108,125 | ||||||||||
Accrued liabilities (including $100,000 and $405,000 accrued interest to related party for years ended December 31,2019 and 2020, respectively) | 3 | 556,248 | 1,613,109 | |||||||||
Total current liabilities | 2,982,750 | 10,903,907 | ||||||||||
Commitments and contingencies | 9 | |||||||||||
NON-CURRENT LIABILITIES: | ||||||||||||
Long-term debt, net | 6 | 9,234,165 | 11,083,829 | |||||||||
Long-term debt, related party | 3, 6 | 5,000,000 | — | |||||||||
Total non-current liabilities | 14,234,165 | 11,083,829 | ||||||||||
SHAREHOLDERS' EQUITY: | ||||||||||||
Common shares, $0.001 par value; 1,950,000,000 shares authorized; 3,318,112 shares issued and outstanding as of December 31, 2019 and 131,212,376 issued and outstanding as of December 31, 2020 | 7 | 3,318 | 131,212 | |||||||||
Preferred shares, $0.001 par value: 50,000,000 shares authorized: | 7 | |||||||||||
Series A Preferred Shares- 9.75% cumulative redeemable perpetual preferred shares (liquidation preference of $30 per share), 480,000 shares issued and outstanding as of December 31, 2019 and 2020, respectively | 7 | 480 | 480 | |||||||||
Series B Preferred Shares – 12,000 shares issued and outstanding as of December 31, 2019 and 2020, respectively | 7 | 12 | 12 | |||||||||
Additional paid-in capital | 12,763,403 | 53,568,650 | ||||||||||
Retained earnings/ (Accumulated deficit) | 436,798 | (1,316,735 | ) | |||||||||
Total shareholders' equity | 13,204,011 | 52,383,619 | ||||||||||
Total liabilities and shareholders' equity | $ | 30,420,926 | $ | 74,371,355 |
Year Ended September 30, | Three Months Ended December 31, | Year Ended December 31, | Year Ended December 31, | |||||||||||||||||
Note | 2018 | 2018 | 2019 | 2020 | ||||||||||||||||
REVENUES: | ||||||||||||||||||||
Vessel revenues (net of commissions to charterers of $153,406, $43,125 ,$302,556 and $629,015 respectively) | $ | 3,960,822 | $ | 1,111,075 | $ | 5,967,772 | $ | 12,487,692 | ||||||||||||
Total revenues | 3,960,822 | 1,111,075 | 5,967,772 | 12,487,692 | ||||||||||||||||
EXPENSES: | ||||||||||||||||||||
Voyage expenses (including $40,471 and $29,769 to related parties for the years ended December 31, 2019 and 2020, respectively) | 3,12 | (37,373 | ) | (19,556 | ) | (261,179 | ) | (584,705 | ) | |||||||||||
Vessel operating expenses | 12 | (1,727,770 | ) | (432,544 | ) | (2,802,991 | ) | (7,447,439 | ) | |||||||||||
Management fees to related parties | 3 | (111,480 | ) | (29,440 | ) | (212,300 | ) | (930,500 | ) | |||||||||||
Depreciation and amortization | 4,5 | (637,611 | ) | (177,378 | ) | (897,171 | ) | (1,904,963 | ) | |||||||||||
Provision for doubtful accounts | 2 | — | — | — | (37,103 | ) | ||||||||||||||
General and administrative expenses | 13 | |||||||||||||||||||
- Company administration expenses (including $400,000 to related party for the year ended December 31, 2020) | (109,233 | ) | (22,954 | ) | (378,777 | ) | (1,130,953 | ) | ||||||||||||
- Public registration costs | (350,167 | ) | (161,116 | ) | (132,091 | ) | — | |||||||||||||
Total expenses | (2,973,634 | ) | (842,988 | ) | (4,684,509 | ) | (12,035,663 | ) | ||||||||||||
Operating income | 987,188 | 268,087 | 1,283,263 | 452,029 | ||||||||||||||||
OTHER INCOME/ (EXPENSES): | ||||||||||||||||||||
Interest and finance costs (including $162,500 and $305,000 to related party for years ended December 31, 2019 and 2020, respectively) | 3,6, 14 | (3,393 | ) | (519 | ) | (222,163 | ) | (2,189,577 | ) | |||||||||||
Interest income | 4,243 | 7,985 | 31,589 | 34,976 | ||||||||||||||||
Foreign exchange (losses)/ gains | (8,539 | ) | 89 | (4,540 | ) | (29,321 | ) | |||||||||||||
Other, net | 1,439 | 800 | — | — | ||||||||||||||||
Total other income/ (expenses), net | (6,250 | ) | 8,355 | (195,114 | ) | (2,183,922 | ) | |||||||||||||
Net income/(loss) and comprehensive income/(loss), before taxes | $ | 980,938 | $ | 276,442 | $ | 1,088,149 | $ | (1,731,893 | ) | |||||||||||
US Source Income Taxes | 10 | — | — | — | (21,640 | ) | ||||||||||||||
Net income/(loss) and comprehensive income/(loss) | $ | 980,938 | $ | 276,442 | $ | 1,088,149 | $ | (1,753,533 | ) | |||||||||||
(Loss)/ Earnings per common share, basic and diluted | 11 | $ | (0.28 | ) | $ | (0.30 | ) | $ | 0.31 | $ | (0.03 | ) | ||||||||
Weighted average number of common shares, basic and diluted | 2,400,000 | 2,400,000 | 2,662,383 | 67,735,195 |
ASSETS | December 31, | December 31, | ||||||||||
CURRENT ASSETS: | Note | 2020 | 2021 | |||||||||
Cash and cash equivalents | $ | 8,926,903 | $ | 37,173,736 | ||||||||
Restricted Cash | 7 | 0 | 2,382,732 | |||||||||
Accounts receivable trade, net | 1,302,218 | 8,224,357 | ||||||||||
Due from related party | 3 | 1,559,132 | 0 | |||||||||
Inventories | 714,818 | 4,436,879 | ||||||||||
Prepaid expenses and other assets | 1,061,083 | 2,591,150 | ||||||||||
Deferred charges, net | 0 | 191,234 | ||||||||||
Total current assets | 13,564,154 | 55,000,088 | ||||||||||
NON-CURRENT ASSETS: | ||||||||||||
Vessels, net (including $138,600, and $3,406,400 related party commissions for the years ended 2020 and 2021, respectively) | 3, 6 | 58,045,628 | 393,965,929 | |||||||||
Advances for vessel acquisition | 6 | 0 | 2,368,165 | |||||||||
Restricted cash | 7 | 500,000 | 3,830,000 | |||||||||
Due from related party | 3 | 0 | 810,437 | |||||||||
Prepaid expenses and other assets, non-current | 200,000 | 2,075,999 | ||||||||||
Deferred charges, net | 4 | 2,061,573 | 4,862,824 | |||||||||
Total non-current assets | 60,807,201 | 407,913,354 | ||||||||||
Total assets | $ | 74,371,355 | $ | 462,913,442 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Current portion of long-term debt, net | 7 | 2,102,037 | 16,091,723 | |||||||||
Current portion of long-term debt, related party | 3, 7 | 5,000,000 | 0 | |||||||||
Accounts payable | 2,078,695 | 5,042,575 | ||||||||||
Due to related parties, current | 3 | 1,941 | 4,507,569 | |||||||||
Deferred revenue, net | 108,125 | 3,927,833 | ||||||||||
Accrued liabilities (including $405,000 and $0 accrued interest to related party, respectively) | 3 | 1,613,109 | 4,459,696 | |||||||||
Total current liabilities | 10,903,907 | 34,029,396 | ||||||||||
Commitments and contingencies | 10 | 0 | 0 | |||||||||
NON-CURRENT LIABILITIES: | ||||||||||||
Long-term debt, net | 7 | 11,083,829 | 85,949,676 | |||||||||
Total non-current liabilities | 11,083,829 | 85,949,676 | ||||||||||
SHAREHOLDERS’ EQUITY: | ||||||||||||
Common shares, $0.001 par value; 1,950,000,000 shares authorized; 13,121,238 shares issued and outstanding as of December 31, 2020 and 94,610,088 issued and outstanding as of December 31, 2021 | 8 | 13,121 | 94,610 | |||||||||
Preferred shares, $0.001 par value: 50,000,000 shares authorized: | 8 | |||||||||||
Series A Preferred Shares- 9.75% cumulative redeemable perpetual preferred shares, 480,000 shares issued and outstanding as of December 31, 2020 and 0 issued and outstanding as of December 31, 2021 | 8 | 480 | 0 | |||||||||
Series B Preferred Shares – 12,000 shares issued and outstanding as of December 31, 2020 and December 31, 2021, respectively | 8 | 12 | 12 | |||||||||
Additional paid-in capital | 53,686,741 | 303,658,153 | ||||||||||
(Accumulated deficit)/ Retained earnings | (1,316,735 | ) | 39,181,595 | |||||||||
Total shareholders’ equity | 52,383,619 | 342,934,370 | ||||||||||
Total liabilities and shareholders’ equity | $ | 74,371,355 | $ | 462,913,442 |
Number of shares issued | ||||||||||||||||||||||||||||
Common shares | Preferred A shares | Preferred B shares | Par Value of Shares issued | Additional Paid-in capital | Retained earnings/ (Accumulated deficit) | Total Shareholders' Equity | ||||||||||||||||||||||
Balance, September 30, 2017 | 2,400,000 | 480,000 | 12,000 | $ | 2,892 | $ | 7,612,108 | $ | 878,644 | $ | 8,493,644 | |||||||||||||||||
- Net income | — | — | — | — | — | 980,938 | 980,938 | |||||||||||||||||||||
Balance, September 30, 2018 | 2,400,000 | 480,000 | 12,000 | $ | 2,892 | $ | 7,612,108 | $ | 1,859,582 | $ | 9,474,582 | |||||||||||||||||
- Net income | — | — | — | — | — | 276,442 | 276,442 | |||||||||||||||||||||
Balance, December 31, 2018 | 2,400,000 | 480,000 | 12,000 | 2,892 | 7,612,108 | 2,136,024 | 9,751,024 | |||||||||||||||||||||
- Issuance of common stock, net of commissions and issuance costs, pursuant to the ATM Program (Note 7) | 618,112 | — | — | 618 | 2,319,083 | — | 2,319,701 | |||||||||||||||||||||
- Issuance of common stock related to Series A Preferred Stock dividends (Note 7) | 300,000 | — | — | 300 | 967,500 | (967,800 | ) | — | ||||||||||||||||||||
- Series A Preferred Stock dividend waived accounted as deemed contribution (Note 7) | — | — | — | — | 3,379,589 | — | 3,379,589 | |||||||||||||||||||||
- Series A Preferred Stock dividend waived (Note 7) | — | — | — | — | (1,560,014 | ) | (1,819,575 | ) | (3,379,589 | ) | ||||||||||||||||||
- Gain on extinguishment of preferred stock pursuant to the Series A Preferred Stock Amendment Agreement, net of expenses (Note 7) | — | — | — | — | 112,637 | — | 112,637 | |||||||||||||||||||||
- Preferred shareholders’ deemed dividend pursuant to the Series A Preferred Stock Amendment Agreement (Note 7) | — | — | — | — | (130,000 | ) | — | (130,000 | ) | |||||||||||||||||||
- Shareholder’s deemed contribution pursuant to the $7.5 Million Bridge Loan | — | — | — | — | 62,500 | — | 62,500 | |||||||||||||||||||||
- Net income | — | — | — | — | — | 1,088,149 | 1,088,149 | |||||||||||||||||||||
Balance, December 31, 2019 | 3,318,112 | 480,000 | 12,000 | 3,810 | 12,763,403 | 436,798 | 13,204,011 | |||||||||||||||||||||
- Issuance of common stock pursuant to the $5.0 Million Convertible Debentures (Notes 6,7) | 8,042,078 | — | — | 8,042 | 5,049,731 | — | 5,057,773 | |||||||||||||||||||||
- Issuance of common stock pursuant to the June Equity Offering, net of issuance costs (Note 7) | 59,082,686 | — | — | 59,083 | 18,539,169 | — | 18,598,252 | |||||||||||||||||||||
- Issuance of common stock pursuant to the July Equity Offering, net of issuance costs (Note 7) | 57,750,000 | — | — | 57,750 | 15,630,104 | — | 15,687,854 | |||||||||||||||||||||
- Issuance of common stock pursuant to the exercise of Class A Warrants (Note 7) | 3,019,500 | — | — | 3,019 | 1,053,806 | — | 1,056,825 | |||||||||||||||||||||
- Beneficial conversion feature pursuant to the issuance of the $5.0 Million Convertible Debentures (Note 6) | — | — | — | — | 532,437 | — | 532,437 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (1,753,533 | ) | (1,753,533 | ) | |||||||||||||||||||
Balance, December 31, 2020 | 131,212,376 | 480,000 | 12,000 | 131,704 | 53,568,650 | (1,316,735 | ) | 52,383,619 |
Note | Year Ended September 30, | Three Months Ended December 31, | Year Ended December 31, | Year Ended December 31, | ||||||||||||||||
2018 | 2018 | 2019 | 2020 | |||||||||||||||||
Cash Flows provided by/(used in) Operating Activities: | ||||||||||||||||||||
Net income/(loss) | $ | 980,938 | $ | 276,442 | $ | 1,088,149 | $ | (1,753,533 | ) | |||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) Operating activities: | ||||||||||||||||||||
Depreciation and amortization of deferred dry-docking costs | 4,5 | 637,611 | 177,378 | 897,171 | 1,904,963 | |||||||||||||||
Amortization and write-off of deferred finance charges | 14 | — | — | 6,628 | 599,087 | |||||||||||||||
Amortization of other deferred charges | — | — | 31,066 | 112,508 | ||||||||||||||||
Deferred revenue amortization | — | — | (119,006 | ) | (430,994 | ) | ||||||||||||||
Convertible debentures’ interest settled in common stock | 6,14 | — | — | — | 57,773 | |||||||||||||||
Amortization and write-off of convertible notes beneficial conversion feature | 6,14 | — | — | — | 532,437 | |||||||||||||||
Provision for doubtful accounts | 2 | — | — | — | 37,103 | |||||||||||||||
Shareholders' deemed interest contribution | — | — | 62,500 | — | ||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable trade | 340,152 | (668,520 | ) | 454,488 | (1,122,836 | ) | ||||||||||||||
Inventories | (14,111 | ) | 3,167 | (86,004 | ) | (571,284 | ) | |||||||||||||
Due from/to related parties | (166,815 | ) | 86,645 | (582,952 | ) | (797,805 | ) | |||||||||||||
Prepaid expenses and other assets | (15,537 | ) | (10,603 | ) | (320,055 | ) | (885,828 | ) | ||||||||||||
Dry-dock costs paid | (784,474 | ) | — | — | (1,308,419 | ) | ||||||||||||||
Other deferred charges | — | — | (198,364 | ) | 26,494 | |||||||||||||||
Accounts payable | (71,621 | ) | 210,888 | 129,201 | 584,527 | |||||||||||||||
Accrued liabilities | (3,437 | ) | 25,001 | 384,827 | 625,894 | |||||||||||||||
Deferred revenue | — | 47,708 | 564,313 | 46,104 | ||||||||||||||||
Net Cash provided by/(used in) Operating Activities | 902,706 | 148,106 | 2,311,962 | (2,343,809 | ) | |||||||||||||||
Cash flow used in Investing Activities: | ||||||||||||||||||||
Vessel acquisitions and other vessel improvements | 5 | — | — | (17,227,436 | ) | (35,472,173 | ) | |||||||||||||
Net cash used in Investing Activities | — | — | (17,227,436 | ) | (35,472,173 | ) | ||||||||||||||
Cash flows provided by Financing Activities: | ||||||||||||||||||||
Gross proceeds from issuance of common stock and warrants | 7 | — | — | 2,625,590 | 39,053,325 | |||||||||||||||
Common stock issuance expenses paid | — | — | (305,889 | ) | (3,710,394 | ) | ||||||||||||||
Proceeds from long-term debt and convertible debentures | 6 | — | — | 11,000,000 | 9,500,000 | |||||||||||||||
Repayment of long-term debt | 6 | — | — | — | (2,050,000 | ) | ||||||||||||||
Proceeds from related party debt | 6 | — | — | 12,500,000 | — | |||||||||||||||
Repayment of related party debt | 6 | — | — | (7,500,000 | ) | — | ||||||||||||||
Payment of deferred financing costs | — | — | (232,568 | ) | (608,985 | ) | ||||||||||||||
Net cash provided by Financing Activities | — | — | 18,087,133 | 42,183,946 | ||||||||||||||||
Net increase in cash, cash equivalents, and restricted cash | 902,706 | 148,106 | 3,171,659 | 4,367,964 | ||||||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the year/period | 836,468 | 1,739,174 | 1,887,280 | 5,058,939 | ||||||||||||||||
Cash, cash equivalents and restricted cash at the end of the year/period | $ | 1,739,174 | $ | 1,887,280 | $ | 5,058,939 | $ | 9,426,903 | ||||||||||||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,739,174 | $ | 1,887,280 | $ | 4,558,939 | $ | 8,926,903 | ||||||||||||
Restricted cash | — | — | 500,000 | 500,000 | ||||||||||||||||
Cash, cash equivalents, and restricted cash | $ | 1,739,174 | $ | 1,887,280 | $ | 5,058,939 | 9,426,903 | |||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||||||||||||
Cash paid for interest | — | — | — | 654,555 | ||||||||||||||||
Shares issued in connection with the settlement of the $5.0 Million Convertible Debentures | — | — | — | 5,057,773 | ||||||||||||||||
Shares issued in connection with the Series A Preferred Shares Settlement Agreement | — | — | 967,800 | — | ||||||||||||||||
Series A Preferred Stock dividend waived accounted as deemed contribution | — | — | 3,379,589 | — | ||||||||||||||||
Preferred shareholders’ deemed contribution pursuant to the Series A Preferred Stock Amendment Agreement, net of expenses | — | — | 112,637 | — | ||||||||||||||||
Shareholder’s deemed contribution pursuant to the $7.5 Million Bridge Loan | — | — | 62,500 | — | ||||||||||||||||
Unpaid vessel acquisition and other vessel improvement costs (included in Accounts payable and Accrued liabilities) | — | — | 33,344 | 657,204 | ||||||||||||||||
Unpaid deferred financing costs (included in Accounts payable) | — | — | 17,000 | — | ||||||||||||||||
Unpaid deferred dry-dock costs (included in Accounts payable and Accrued liabilities) | — | — | — | 907,685 |
Note | Year Ended December 31, 2019 | Year Ended December 31, 2020 | Year Ended December 31, 2021 | |||||||||||||
REVENUES: | ||||||||||||||||
Vessel revenues (net of commissions to charterers of $302,556, $629,015 and $4,417,505 for the years ended December 31, 2019, 2020 and 2021, respectively) | 12 | $ | 5,967,772 | $ | 12,487,692 | $ | 132,049,710 | |||||||||
Total revenues | 5,967,772 | 12,487,692 | 132,049,710 | |||||||||||||
EXPENSES: | ||||||||||||||||
Voyage expenses (including $40,471, $29,769 and $1,671,145 to related parties for the years ended December 31, 2019, 2020 and 2021, respectively) | 3,13 | (261,179 | ) | (584,705 | ) | (12,950,783 | ) | |||||||||
Vessel operating expenses | 13 | (2,802,991 | ) | (7,447,439 | ) | (39,203,471 | ) | |||||||||
Management fees to related parties | 3 | (212,300 | ) | (930,500 | ) | (6,744,750 | ) | |||||||||
Depreciation and amortization | 4,6 | (897,171 | ) | (1,904,963 | ) | (14,362,828 | ) | |||||||||
Provision for doubtful accounts | 2 | 0 | (37,103 | ) | (2,483 | ) | ||||||||||
General and administrative expenses | 14 | |||||||||||||||
- Company administration expenses (including $0, $400,000, and $1,200,000 to related party for the years ended December 31, 2019, 2020 and 2021) | (378,777 | ) | (1,130,953 | ) | (3,266,310 | ) | ||||||||||
- Public registration costs | (132,091 | ) | 0 | 0 | ||||||||||||
Total expenses | (4,684,509 | ) | (12,035,663 | ) | (76,530,625 | ) | ||||||||||
Operating income | 1,283,263 | 452,029 | 55,519,085 | |||||||||||||
OTHER INCOME/ (EXPENSES): | ||||||||||||||||
Interest and finance costs (including $162,500, $305,000 and $204,167 to related party for the years ended December 31, 2019, 2020 and 2021, respectively) | 3,7,15 | (222,163 | ) | (2,189,577 | ) | (2,854,998 | ) | |||||||||
Interest income | 31,589 | 34,976 | 75,123 | |||||||||||||
Foreign exchange (losses)/ gains | (4,540 | ) | (29,321 | ) | 28,616 | |||||||||||
Total other expenses, net | (195,114 | ) | (2,183,922 | ) | (2,751,259 | ) | ||||||||||
Net income/(loss) and comprehensive income/(loss), before taxes | $ | 1,088,149 | $ | (1,731,893 | ) | $ | 52,767,826 | |||||||||
US Source Income Taxes | 16 | 0 | (21,640 | ) | (497,339 | ) | ||||||||||
Net income/(loss) and comprehensive income/(loss) | $ | 1,088,149 | $ | (1,753,533 | ) | $ | 52,270,487 | |||||||||
Cumulative dividends on Series A Preferred Shares | 11 | (372,022 | ) | 0 | 0 | |||||||||||
Gain on extinguishment of Series A Preferred Shares | 8,11 | 112,637 | 0 | 0 | ||||||||||||
Deemed dividend on Series A preferred shares | 8,11 | 0 | 0 | (11,772,157 | ) | |||||||||||
Net income/(loss) and comprehensive income/(loss) attributable to common shareholders | 828,764 | (1,753,533 | ) | 40,498,330 | ||||||||||||
Earnings/(Loss) per common share, basic | 11 | 3.11 | (0.26 | ) | 0.48 | |||||||||||
Earnings/(Loss) per common share, diluted | 11 | $ | 3.11 | $ | (0.26 | ) | $ | 0.47 | ||||||||
Weighted average number of common shares, basic | 266,238 | 6,773,519 | 83,923,435 | |||||||||||||
Weighted average number of common shares, diluted | 266,238 | 6,773,519 | 85,332,728 |
Number of shares issued | Par Value of Shares issued | Additional Paid-in capital | Retained earnings/ (Accumulated deficit) | Total Shareholders’ Equity | ||||||||||||||||||||||||
Common shares | Preferred A shares | Preferred B shares | ||||||||||||||||||||||||||
Balance, December 31, 2018 | 240,000 | 480,000 | 12,000 | 732 | 7,614,268 | 2,136,024 | 9,751,024 | |||||||||||||||||||||
- Issuance of common stock, net of commissions and issuance costs, pursuant to the First ATM Program (Note 8) | 61,811 | 0 | 0 | 62 | 2,319,639 | 0 | 2,319,701 | |||||||||||||||||||||
- Issuance of common stock related to Series A Preferred Stock dividends (Note 8) | 30,000 | 0 | 0 | 30 | 967,770 | (967,800 | ) | 0 | ||||||||||||||||||||
- Series A Preferred Stock dividend waived accounted as deemed contribution (Note 8) | — | — | — | 0 | 3,379,589 | 0 | 3,379,589 | |||||||||||||||||||||
- Series A Preferred Stock dividend waived (Note 8) | — | — | — | 0 | (1,560,014 | ) | (1,819,575 | ) | (3,379,589 | ) | ||||||||||||||||||
- Gain on extinguishment of preferred stock pursuant to the Series A Preferred Stock Amendment Agreement, net of expenses (Note 8) | — | — | — | 0 | 112,637 | 0 | 112,637 | |||||||||||||||||||||
- Preferred shareholders’ deemed dividend pursuant to the Series A Preferred Stock Amendment Agreement (Note 8) | — | — | — | 0 | (130,000 | ) | 0 | (130,000 | ) | |||||||||||||||||||
- Shareholder’s deemed contribution pursuant to the $7.5 Million Bridge Loan | — | — | — | 0 | 62,500 | 0 | 62,500 | |||||||||||||||||||||
- Net income | — | — | — | 0 | 0 | 1,088,149 | 1,088,149 | |||||||||||||||||||||
Balance, December 31, 2019 | 331,811 | 480,000 | 12,000 | 824 | 12,766,389 | 436,798 | 13,204,011 | |||||||||||||||||||||
- Issuance of common stock pursuant to the $5.0 Million Convertible Debentures (Note 7) | 804,208 | 0 | 0 | 804 | 5,056,969 | 0 | 5,057,773 | |||||||||||||||||||||
- Issuance of common stock pursuant to the 2020 June Equity Offering, net of issuance costs (Note 8) | 5,908,269 | 0 | 0 | 5,908 | 18,592,344 | 0 | 18,598,252 | |||||||||||||||||||||
- Issuance of common stock pursuant to the 2020 July Equity Offering, net of issuance costs (Note 8) | 5,775,000 | 0 | 0 | 5,775 | 15,682,079 | 0 | 15,687,854 | |||||||||||||||||||||
- Issuance of common stock pursuant to the exercise of Class A Warrants (Note 8) | 301,950 | 0 | 0 | 302 | 1,056,523 | 0 | 1,056,825 | |||||||||||||||||||||
- Beneficial conversion feature pursuant to the issuance of the $5.0 Million Convertible Debentures (Note 7) | — | — | — | 0 | 532,437 | 0 | 532,437 | |||||||||||||||||||||
-Net loss | — | — | — | 0 | 0 | (1,753,533 | ) | (1,753,533 | ) | |||||||||||||||||||
Balance, December 31, 2020 | 13,121,238 | 480,000 | 12,000 | 13,613 | 53,686,741 | (1,316,735 | ) | 52,383,619 | ||||||||||||||||||||
- Issuance of common stock pursuant to the registered direct offerings (Note 8) | 42,405,770 | 0 | 0 | 42,406 | 156,824,134 | 0 | 156,866,540 | |||||||||||||||||||||
- Issuance of common stock pursuant to warrant exercises (Note 8) | 34,428,840 | 0 | 0 | 34,429 | 83,386,517 | 0 | 83,420,946 | |||||||||||||||||||||
- Issuance of common stock pursuant to the Second ATM Program (Note 8) | 4,654,240 | 0 | 0 | 4,654 | 12,388,124 | 0 | 12,392,778 | |||||||||||||||||||||
- Redemption of Series A Preferred Shares (Note 8) | (480,000 | ) | (480 | ) | (2,627,363 | ) | (11,772,157 | ) | (14,400,000 | ) | ||||||||||||||||||
-Net income | — | — | — | 0 | 0 | 52,270,487 | 52,270,487 | |||||||||||||||||||||
Balance, December 31, 2021 | 94,610,088 | 0 | 12,000 | 94,622 | 303,658,153 | 39,181,595 | 342,934,370 |
Note | Year Ended December 31, | |||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
Cash Flows provided by/(used in) Operating Activities: | ||||||||||||||||
Net income/(loss) | $ | 1,088,149 | $ | (1,753,533 | ) | $ | 52,270,487 | |||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) Operating activities: | ||||||||||||||||
Depreciation and amortization | 4,6 | 897,171 | 1,904,963 | 14,362,828 | ||||||||||||
Amortization and write-off of deferred finance charges | 15 | 6,628 | 599,087 | 414,629 | ||||||||||||
Amortization of other deferred charges | 31,066 | 112,508 | 0 | |||||||||||||
Deferred revenue amortization | (119,006 | ) | (430,994 | ) | 0 | |||||||||||
Amortization of fair value of acquired charter | 5 | 0 | 0 | (1,940,000 | ) | |||||||||||
Interest settled in common stock | 7,15 | 0 | 57,773 | 0 | ||||||||||||
Amortization and write-off of convertible notes beneficial conversion feature | 7,15 | 0 | 532,437 | 0 | ||||||||||||
Provision for doubtful accounts | 2 | 0 | 37,103 | 2,483 | ||||||||||||
Shareholders’ deemed interest contribution | 62,500 | 0 | 0 | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable trade, net | 454,488 | (1,122,836 | ) | (6,924,622 | ) | |||||||||||
Inventories | (86,004 | ) | (571,284 | ) | (3,722,061 | ) | ||||||||||
Due from/to related parties | (582,952 | ) | (797,805 | ) | 5,254,323 | |||||||||||
Prepaid expenses and other assets | (320,055 | ) | (885,828 | ) | (3,406,066 | ) | ||||||||||
Dry-dock costs paid | 0 | (1,308,419 | ) | (3,730,467 | ) | |||||||||||
Other deferred charges | (198,364 | ) | 26,494 | (191,234 | ) | |||||||||||
Accounts payable | 129,201 | 584,527 | 3,070,287 | |||||||||||||
Accrued liabilities | 384,827 | 625,894 | 1,495,032 | |||||||||||||
Deferred revenue | 564,313 | 46,104 | 3,819,708 | |||||||||||||
Net Cash provided by/(used in) Operating Activities | 2,311,962 | (2,343,809 | ) | 60,775,327 | ||||||||||||
Cash flow used in Investing Activities: | ||||||||||||||||
Vessel acquisitions (including time charter attached) and other vessel improvements | 6 | (17,227,436 | ) | (35,472,173 | ) | (346,273,252 | ) | |||||||||
Advances for vessel acquisition | 6 | 0 | 0 | (2,367,455 | ) | |||||||||||
Net cash used in Investing Activities | (17,227,436 | ) | (35,472,173 | ) | (348,640,707 | ) | ||||||||||
Cash flows provided by Financing Activities: | ||||||||||||||||
Gross proceeds from issuance of common stock and warrants | 8 | 2,625,590 | 39,053,325 | 265,307,807 | ||||||||||||
Common stock issuance expenses | (305,889 | ) | (3,710,394 | ) | (12,527,747 | ) | ||||||||||
Proceeds from long-term debt and convertible debentures | 7 | 11,000,000 | 9,500,000 | 97,190,000 | ||||||||||||
Redemption of Series A Preferred Shares | 8 | 0 | 0 | (14,400,000 | ) | |||||||||||
Repayment of long-term debt | 7 | 0 | (2,050,000 | ) | (6,878,500 | ) | ||||||||||
Proceeds from related party debt | 12,500,000 | 0 | 0 | |||||||||||||
Repayment of related party debt | 3 | (7,500,000 | ) | 0 | (5,000,000 | ) | ||||||||||
Payment of deferred financing costs | (232,568 | ) | (608,985 | ) | (1,866,615 | ) | ||||||||||
Net cash provided by Financing Activities | 18,087,133 | 42,183,946 | 321,824,945 | |||||||||||||
Net increase in cash, cash equivalents, and restricted cash | 3,171,659 | 4,367,964 | 33,959,565 | |||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the period | 1,887,280 | 5,058,939 | 9,426,903 | |||||||||||||
Cash, cash equivalents and restricted cash at the end of the period | $ | 5,058,939 | $ | 9,426,903 | $ | 43,386,468 | ||||||||||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||||||||||||||||
Cash and cash equivalents | $ | 4,558,939 | $ | 8,926,903 | $ | 37,173,736 | ||||||||||
Restricted cash, current | 0 | 0 | 2,382,732 | |||||||||||||
Restricted cash, non-current | 500,000 | 500,000 | 3,830,000 | |||||||||||||
Cash, cash equivalents, and restricted cash | $ | 5,058,939 | $ | 9,426,903 | $ | 43,386,468 | ||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||||||||
Cash paid for interest | 0 | 654,555 | 2,271,525 | |||||||||||||
Shares issued in connection with the settlement of the $5.0 Million Convertible Debentures | 0 | 5,057,773 | 0 | |||||||||||||
Shares issued in connection with the Series A Preferred Shares Settlement Agreement | 967,800 | 0 | 0 | |||||||||||||
Series A Preferred Stock dividend waived accounted as deemed contribution | 3,379,589 | 0 | 0 | |||||||||||||
Preferred shareholders’ deemed contribution pursuant to the Series A Preferred Stock Amendment Agreement, net of expenses | 112,637 | 0 | 0 | |||||||||||||
Shareholder’s deemed contribution pursuant to the $7.5 Million Bridge Loan | 62,500 | 0 | 0 | |||||||||||||
Unpaid capital raising costs (included in Accounts payable and Accrued Liabilities) | 0 | 0 | 99,797 | |||||||||||||
Unpaid vessel acquisition and other vessel improvement costs (included in Accounts payable and Accrued liabilities) | 33,344 | 657,204 | 1,592,001 | |||||||||||||
Unpaid advances for vessel acquisitions (included in Accounts payable and Accrued Liabilities) | 0 | 0 | 710 | |||||||||||||
Unpaid deferred dry-dock costs (included in Accounts payable and Accrued liabilities) | 0 | 907,685 | 1,113,547 | |||||||||||||
Unpaid deferred financing costs | 17,000 | 0 | 3,980 |
1. | Basis of Presentation and General information |
Company | Country of incorporation | Vessel Name | DWT | Year Built | Delivery date to Castor |
Spetses Shipping Co. (“Spetses”) | Marshall Islands | Magic P | 76,453 | 2004 | February 2017 |
Bistro Maritime Co. (“Bistro”) | Marshall Islands | Magic Sun | 75,311 | 2001 | September 2019 |
Pikachu Shipping Co. (“Pikachu”) | Marshall Islands | Magic Moon | 76,602 | 2005 | October 2019 |
Bagheera Shipping Co. (“Bagheera”) | Marshall Islands | Magic Rainbow | 73,593 | 2007 | August 2020 |
Pocahontas Shipping Co. (“Pocahontas”) | Marshall Islands | Magic Horizon | 76,619 | 2010 | October 2020 |
Jumaru Shipping Co. (“Jumaru”) | Marshall Islands | Magic Nova | 78,833 | 2010 | October 2020 |
Company | Country of incorporation | Vessel Name | DWT | Year Built | Delivery date to Castor | |
1 | Spetses Shipping Co. (“Spetses”) | Marshall Islands | M/V Magic P | 76,453 | 2004 | February 2017 |
2 | Bistro Maritime Co. (“Bistro”) | Marshall Islands | M/V Magic Sun | 75,311 | 2001 | September 2019 |
3 | Pikachu Shipping Co. (“Pikachu”) | Marshall Islands | M/V Magic Moon | 76,602 | 2005 | October 2019 |
4 | Bagheera Shipping Co. (“Bagheera”) | Marshall Islands | M/V Magic Rainbow | 73,593 | 2007 | August 2020 |
5 | Pocahontas Shipping Co. (“Pocahontas”) | Marshall Islands | M/V Magic Horizon | 76,619 | 2010 | October 2020 |
6 | Jumaru Shipping Co. (“Jumaru”) | Marshall Islands | M/V Magic Nova | 78,833 | 2010 | October 2020 |
7 | Super Mario Shipping Co. (“Super Mario”) | Marshall Islands | M/V Magic Venus | 83,416 | 2010 | March 2021 |
8 | Pumba Shipping Co. (“Pumba”) | Marshall Islands | M/V Magic Orion | 180,200 | 2006 | March 2021 |
9 | Kabamaru Shipping Co. (“Kabamaru”) | Marshall Islands | M/V Magic Argo | 82,338 | 2009 | March 2021 |
10 | Luffy Shipping Co. (“Luffy”) | Marshall Islands | M/V Magic Twilight | 80,283 | 2010 | April 2021 |
11 | Liono Shipping Co. (“Liono”) | Marshall Islands | M/V Magic Thunder | 83,375 | 2011 | April 2021 |
12 | Stewie Shipping Co. (“Stewie”) | Marshall Islands | M/V Magic Vela | 75,003 | 2011 | May 2021 |
13 | Snoopy Shipping Co. (“Snoopy”) | Marshall Islands | M/V Magic Nebula | 80,281 | 2010 | May 2021 |
14 | Mulan Shipping Co. (“Mulan”) | Marshall Islands | M/V Magic Starlight | 81,048 | 2015 | May 2021 |
15 | Cinderella Shipping Co. (“Cinderella”) | Marshall Islands | M/V Magic Eclipse | 74,940 | 2011 | June 2021 |
16 | Rocket Shipping Co. (“Rocket”) | Marshall Islands | M/T Wonder Polaris | 115,351 | 2005 | March 2021 |
17 | Gamora Shipping Co. (“Gamora”) | Marshall Islands | M/T Wonder Sirius | 115,341 | 2005 | March 2021 |
18 | Starlord Shipping Co. (“Starlord”) | Marshall Islands | M/T Wonder Vega | 106,062 | 2005 | May 2021 |
19 | Hawkeye Shipping Co. (“Hawkeye”) | Marshall Islands | M/T Wonder Avior | 106,162 | 2004 | May 2021 |
20 | Elektra Shipping Co. (“Elektra”) | Marshall Islands | M/T Wonder Arcturus | 106,149 | 2002 | May 2021 |
21 | Vision Shipping Co. (“Vision”) | Marshall Islands | M/T Wonder Mimosa | 36,718 | 2006 | May 2021 |
22 | Colossus Shipping Co. (“Colossus”) | Marshall Islands | M/T Wonder Musica | 106,290 | 2004 | June 2021 |
1. | Basis of Presentation and General information (continued): |
23 | Xavier Shipping Co. (“Xavier”) | Marshall Islands | M/T Wonder Formosa | 36,660 | 2006 | June 2021 |
24 | Songoku Shipping Co. (“Songoku”) | Marshall Islands | M/V Magic Pluto | 74,940 | 2013 | August 2021 |
25 | Asterix Shipping Co. (“Asterix”) | Marshall Islands | M/V Magic Perseus | 82,158 | 2013 | August 2021 |
26 | Johnny Bravo Shipping Co. (“Johnny Bravo”) | Marshall Islands | M/V Magic Mars | 76,822 | 2014 | September 2021 |
27 | Garfield Shipping Co. (“Garfield”) | Marshall Islands | M/V Magic Phoenix | 76,636 | 2008 | October 2021 |
28 | Drax Shipping Co. (“Drax”) | Marshall Islands | M/T Wonder Bellatrix | 115,341 | 2006 | December 2021 |
1 | Mickey Shipping Co. (“Mickey”) incorporated under the laws of the Marshall Islands |
1 | Castor Maritime SCR Corp. (1) |
(1) | Incorporated under the laws of the Marshall Islands, this entity serves as the Company’s vessel owning subsidiaries’ cash manager with effect from November 1, 2021. |
Charterer | Year Ended December 31, 2019 | Year Ended December 31, 2020 | Year Ended December 31, 2021 | |||||||||
A | 63 | % | 34 | % | 20 | % | ||||||
B | 0 | % | 0 | % | 12 | % | ||||||
C | 0 | % | 0 | % | 11 | % | ||||||
D | 13 | % | 0 | % | 0 | % | ||||||
E | 12 | % | 24 | % | 0 | % | ||||||
F | 12 | % | 0 | % | 0 | % | ||||||
Total | 100 | % | 58 | % | 43 | % |
Charterer | Year Ended September 30, 2018 | Three Months Ended December 31, 2018 | Year Ended December 31, 2019 | Year Ended December 31, 2020 | ||||||||||||||
A | 24 | % | 100 | % | 63 | % | 34 | % | ||||||||||
B | 52 | % | — | % | — | % | — | % | ||||||||||
C | 17 | % | — | % | — | % | — | % | ||||||||||
D | — | % | — | % | 13 | % | — | % | ||||||||||
E | — | % | — | % | 12 | % | 24 | % | ||||||||||
F | — | % | — | % | 12 | % | — | % | ||||||||||
Total | 93 | % | 100 | % | 100 | % | 58 | % |
2. | Significant Accounting Policies and Recent Accounting Pronouncements: |
2. | Significant Accounting Policies and Recent Accounting Pronouncements (continued): |
2. | Significant Accounting Policies and Recent Accounting Pronouncements (continued): |
2. | Significant Accounting Policies and Recent Accounting Pronouncements (continued): |
2. | Significant Accounting Policies and Recent Accounting Pronouncements (continued): |
2. | Significant Accounting Policies and Recent Accounting Pronouncements (continued): |
2. | Significant Accounting Policies and Recent Accounting Pronouncements (continued): |
3. | Transactions with Related Parties: |
Year ended September 30, | Three months ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||
2018 | 2018 | 2019 | 2020 | Year ended December 31, 2019 | Year ended December 31, 2020 | Year ended December 31, 2021 | ||||||||||||||||||||||
Management fees-related parties | ||||||||||||||||||||||||||||
Management fees – Pavimar (a) | $ | 111,480 | $ | 29,440 | $ | 212,300 | $ | 768,000 | $ | 212,300 | $ | 768,000 | $ | 4,761,000 | ||||||||||||||
Management fees – Castor Ships (d) | — | — | — | 162,500 | ||||||||||||||||||||||||
Management fees – Castor Ships (c) | 0 | 162,500 | 1,983,750 | |||||||||||||||||||||||||
Included in Voyage expenses | ||||||||||||||||||||||||||||
Charter hire commissions (b),(d) | $ | — | $ | — | $ | 40,471 | $ | 29,769 | ||||||||||||||||||||
Charter hire commissions – Castor Ships (c)(d) | $ | 40,471 | $ | 29,769 | $ | 1,671,145 | ||||||||||||||||||||||
Included in Interest and finance costs | ||||||||||||||||||||||||||||
Interest expenses (c) – Thalassa | $ | — | $ | — | $ | 162,500 | $ | 305,000 | ||||||||||||||||||||
Interest expenses (b) – Thalassa | $ | 162,500 | $ | 305,000 | $ | 204,167 | ||||||||||||||||||||||
Included in General and administrative expenses | ||||||||||||||||||||||||||||
Administration fees – Castor Ships (d) | $ | — | $ | — | $ | — | $ | 400,000 | ||||||||||||||||||||
Administration fees – Castor Ships (c) | $ | 0 | $ | 400,000 | $ | 1,200,000 | ||||||||||||||||||||||
Included in Vessels’ cost | ||||||||||||||||||||||||||||
Sale & purchase commission – Castor Ships (d) | $ | — | $ | — | $ | — | $ | 138,600 | ||||||||||||||||||||
Sale & purchase commission – Castor Ships (c) | $ | 0 | $ | 138,600 | $ | 3,406,400 |
December 31, 2019 | December 31, 2020 | |||||||
Assets: | ||||||||
Working capital advances granted to Pavimar (a) | $ | 759,386 | $ | 1,559,132 | ||||
Liabilities: | ||||||||
Related party debt (c) – Thalassa | $ | 5,000,000 | $ | 5,000,000 | ||||
Accrued loan interest (c) – Thalassa | 100,000 | 405,000 | ||||||
Voyage Commissions due to Castor Ships (d) | — | 1,941 |
December 31, 2020 | December 31, 2021 | |||||||
Assets: | ||||||||
Due from Pavimar (a) – current | $ | 1,559,132 | $ | 0 | ||||
Due from Pavimar (a) – non-current | 0 | 810,437 | ||||||
Liabilities: | ||||||||
Due to Pavimar (a) – current | 0 | 3,909,885 | ||||||
Related party debt (b) – Thalassa | $ | 5,000,000 | $ | 0 | ||||
Accrued loan interest (b) – Thalassa | 405,000 | 0 | ||||||
Voyage commissions, management fees and other expenses due to Castor Ships (c) | 1,941 | 597,684 |
3. | Transactions with Related Parties (continued): |
3. | Transactions with Related Parties (continued): |
4. | Deferred charges, net: |
Dry-docking costs | Dry-docking costs | |||||||
Balance September 30, 2018 | $ | 443,394 | ||||||
Amortization | (102,324 | ) | ||||||
Balance December 31, 2018 | $ | 341,070 | $ | 341,070 | ||||
Amortization | (341,070 | ) | (341,070 | ) | ||||
Balance December 31, 2019 | $ | — | $ | 0 | ||||
Additions | 2,216,102 | 2,216,102 | ||||||
Amortization | (154,529 | ) | (154,529 | ) | ||||
Balance December 31, 2020 | $ | 2,061,573 | $ | 2,061,573 | ||||
Additions | 3,936,331 | |||||||
Amortization | (1,135,080 | ) | ||||||
Balance December 31, 2021 | $ | 4,862,824 |
5. | Fair value of acquired time charter: |
6. | Vessels, net/ Advances for vessel acquisition: |
Vessel Cost | Accumulated depreciation | Net Book Value | ||||||||||
Balance December 31, 2019 | 24,810,061 | (1,110,032 | ) | 23,700,029 | ||||||||
— Acquisitions, improvements, and other vessel costs | 36,096,033 | — | 36,096,033 | |||||||||
— Period depreciation | — | (1,750,434 | ) | (1,750,434 | ) | |||||||
Balance December 31, 2020 | 60,906,094 | (2,860,466 | ) | 58,045,628 | ||||||||
— Acquisitions, improvements, and other vessel costs | 299,460,599 | — | 299,460,599 | |||||||||
— Transfers from Advances for vessel acquisitions (b) | 49,687,450 | — | 49,687,450 | |||||||||
— Period depreciation | — | (13,227,748 | ) | (13,227,748 | ) | |||||||
Balance December 31, 2021 | 410,054,143 | (16,088,214 | ) | 393,965,929 |
Vessels, |
Vessel Name | Vessel Type | DWT | Year Built | Country of Construction | Purchase Price (in million) | Delivery Date |
2020 Acquisitions | ||||||
Magic Rainbow | Panamax | 73,593 | 2007 | China | $7.85 | 08/08/2020 |
Magic Horizon | Panamax | 76,619 | 2010 | Japan | $12.75 | 10/09/2020 |
Magic Nova | Panamax | 78,833 | 2010 | Japan | $13.86 | 10/15/2020 |
2021 Acquisitions | ||||||
Magic Venus | Kamsarmax | 83,416 | 2010 | Japan | $15.85 | 03/02/2021 |
Wonder Polaris | Aframax LR2 | 115,351 | 2005 | S. Korea | $13.60 | 03/11/2021 |
Magic Orion | Capesize | 180,200 | 2006 | Japan | $17.50 | 03/17/2021 |
Magic Argo | Kamsarmax | 82,338 | 2009 | Japan | $14.50 | 03/18/2021 |
Wonder Sirius | Aframax LR2 | 115,341 | 2005 | S. Korea | $13.60 | 03/22/2021 |
Magic Twilight | Kamsarmax | 80,283 | 2010 | S. Korea | $14.80 | 04/09/2021 |
Magic Thunder | Kamsarmax | 83,375 | 2011 | Japan | $16.85 | 04/13/2021 |
Magic Vela | Panamax | 75,003 | 2011 | China | $14.50 | 05/12/2021 |
Magic Nebula | Kamsarmax | 80,281 | 2010 | S. Korea | $15.45 | 05/20/2021 |
Wonder Vega | Aframax | 106,062 | 2005 | S. Korea | $14.80 | 05/21/2021 |
Magic Starlight | Kamsarmax | 81,048 | 2015 | China | $23.50 | 05/23/2021 |
Wonder Avior | Aframax LR2 | 106,162 | 2004 | S. Korea | $12.00 | 05/27/2021 |
Wonder Arcturus | Aframax LR2 | 106,149 | 2002 | S. Korea | $10.00 | 05/31/2021 |
Wonder Mimosa | Handysize | 36,718 | 2006 | S. Korea | $7.25 | 05/31/2021 |
Magic Eclipse | Panamax | 74,940 | 2011 | Japan | $18.48 | 06/07/2021 |
Wonder Musica | Aframax LR2 | 106,290 | 2004 | S. Korea | $12.00 | 06/15/2021 |
Wonder Formosa | Handysize | 36,660 | 2006 | S. Korea | $8.00 | 06/22/2021 |
Magic Pluto | Panamax | 74,940 | 2013 | Japan | $19.06 | 08/06/2021 |
Magic Perseus | Kamsarmax | 82,158 | 2013 | Japan | $21.00 | 08/09/2021 |
Magic Mars | Panamax | 76,822 | 2014 | S. Korea | $20.40 | 09/20/2021 |
Magic Phoenix | Panamax | 76,636 | 2008 | Japan | $18.75 | 10/26/2021 |
Wonder Bellatrix | Aframax LR2 | 115,341 | 2006 | S. Korea | $18.15 | 12/23/2021 |
6. | Vessels, net/ Advances for vessel acquisition (continued): |
(b) | Advances for vessel acquisition |
Vessel Cost | Accumulated depreciation | Net Book Value | ||||||||||
Balance September 30, 2018 | $ | 7,549,281 | $ | (478,877 | ) | $ | 7,070,404 | |||||
—Period depreciation | — | (75,054 | ) | (75,054 | ) | |||||||
Balance December 31, 2018 | $ | 7,549,281 | $ | (553,931 | ) | $ | 6,995,350 | |||||
— Acquisitions | 17,260,780 | — | 17,260,780 | |||||||||
—Yearly depreciation | — | (556,101 | ) | (556,101 | ) | |||||||
Balance December 31, 2019 | $ | 24,810,061 | $ | (1,110,032 | ) | $ | 23,700,029 | |||||
— Acquisitions and other improvements to fleet vessels | 36,096,033 | — | 36,096,033 | |||||||||
—Yearly depreciation | — | (1,750,434 | ) | (1,750,434 | ) | |||||||
Balance December 31, 2020 | 60,906,094 | (2,860,466 | ) | 58,045,628 |
Vessel Cost | ||||
Balance December 31, 2020 | $ | 0 | ||
— Advances for vessel acquisitions and other vessel pre-delivery costs | 52,055,615 | |||
—Transfer to Vessels, net (a) | (49,687,450 | ) | ||
Balance December 31, 2021 | $ | 2,368,165 |
Long-Term Debt: |
Year Ended | |||||||||
Loan facilities | Borrowers- Issuers | December 31, 2019 | December 31, 2020 | ||||||
$11.0 Million Alpha Bank Facility (a) | Spetses- Pikachu | $ | 11,000,000 | $ | 9,400,000 | ||||
$4.5 Million Chailease Financial Services Facility (b) | Bistro | — | 4,050,000 | ||||||
Total long-term debt | $ | 11,000,000 | $ | 13,450,000 | |||||
Less: Deferred financing costs | (242,940 | ) | (264,134 | ) | |||||
Total long-term debt, net of deferred finance costs | $ | 10,757,060 | 13,185,866 | ||||||
Presented: | |||||||||
Current portion of long-term debt | $ | 1,600,000 | $ | 2,200,000 | |||||
Less: Current portion of deferred finance costs | (77,105 | ) | (97,963 | ) | |||||
Current portion of long-term debt, net of deferred finance costs | $ | 1,522,895 | $ | 2,102,037 | |||||
Non-Current portion of long-term debt | 9,400,000 | 11,250,000 | |||||||
Less: Non-Current portion of deferred finance costs | (165,835 | ) | (166,171 | ) | |||||
Non-Current portion of long-term debt, net of deferred finance costs | $ | 9,234,165 | $ | 11,083,829 | |||||
Debt instruments from related party | |||||||||
$5.0 Million Term Loan Facility (Note 3(c)) | Castor | 5,000,000 | 5,000,000 | ||||||
Total long-term debt from related party | $ | 5,000,000 | $ | 5,000,000 |
Year Ended | |||||||||
Loan facilities | Borrowers | December 31, 2020 | December 31, 2021 | ||||||
$11.0 Million Term Loan Facility (a) | Spetses- Pikachu | $ | 9,400,000 | $ | 7,800,000 | ||||
$4.5 Million Term Loan Facility (b) | Bistro | 4,050,000 | 3,450,000 | ||||||
$15.29 Million Term Loan Facility (c) | Pocahontas- Jumaru | 0 | 13,877,000 | ||||||
$18.0 Million Term Loan Facility (d) | Rocket- Gamora | 0 | 16,300,000 | ||||||
$40.75 Million Term Loan Facility (e) | Liono-Snoopy-Cinderella-Luffy | 0 | 39,596,000 | ||||||
$23.15 Million Term Loan Facility (f) | Bagheera-Garfield | 0 | 22,738,500 | ||||||
Total long-term debt | $ | 13,450,000 | $ | 103,761,500 | |||||
Less: Deferred financing costs | (264,134 | ) | (1,720,101 | ) | |||||
Total long-term debt, net of deferred finance costs | $ | 13,185,866 | 102,041,399 | ||||||
Presented: | |||||||||
Current portion of long-term debt | $ | 2,200,000 | $ | 16,688,000 | |||||
Less: Current portion of deferred finance costs | (97,963 | ) | (596,277 | ) | |||||
Current portion of long-term debt, net of deferred finance costs | $ | 2,102,037 | $ | 16,091,723 | |||||
Non-Current portion of long-term debt | 11,250,000 | 87,073,500 | |||||||
Less: Non-Current portion of deferred finance costs | (166,171 | ) | (1,123,824 | ) | |||||
Non-Current portion of long-term debt, net of deferred finance costs | $ | 11,083,829 | $ | 85,949,676 | |||||
Debt instruments from related party | |||||||||
$5.0 Million Term Loan Facility (Note 3(b)) | Castor | 5,000,000 | 0 | ||||||
Total long-term debt from related party, current | $ | 5,000,000 | $ | 0 |
7. | Long-Term Debt (continued): |
a. | $11.0 Million |
b. | $4.5 Million |
c. | $15.29 Million Term Loan Facility |
7. | Long-Term Debt (continued): |
d. | $18.0 Million Term Loan Facility |
$40.75 Million Term Loan Facility |
f. | $23.15 Million Term Loan Facility |
7. | Long-Term Debt (continued): |
g. | $5.0 Million Convertible Debentures: |
Year ending December 31, | Amount | |||
2021 | $ | 7,200,000 | ||
2022 | 2,200,000 | |||
2023 | 2,200,000 | |||
2024 | 5,200,000 | |||
2025 | 1,650,000 | |||
Total long-term debt (including related party debt) | $ | 18,450,000 |
Year ending December 31, | Amount | |||
2022 | $ | 16,688,000 | ||
2023 | 14,743,400 | |||
2024 | 16,604,400 | |||
2025 | 24,545,400 | |||
2026 | 31,180,300 | |||
Total long-term debt | $ | 103,761,500 |
7. | Long-Term Debt (continued): |
Equity Capital Structure: |
(a) | Common Shares: |
8. | Equity Capital Structure (continued): |
8. | Equity Capital Structure (continued): |
8. | Equity Capital Structure (continued): |
(b) | Preferred Shares: |
Series | Description | Initial Issuance Date | Total Shares Outstanding | Liquidation Preference per Share (in dollars) | Par Value | Dividend Rate | Carrying Value December 31, 2019 and 2020 |
Series A | 9.75% Cumulative Perpetual Redeemable | 09/22/17 | 480,000 | $30 (1) | $480 | Effective January 1, 2022- 9.75% per annum of a value of $25 per share | $2,627,843 |
Series B | n/a | 09/22/17 | 12,000 | - | $12 | n/a | $12 |
Total | 492,000 | $492 | $2,627,855 |
Equity Capital Structure (continued): |
i) | waive all dividend payment obligations on the Series A Preferred Shares during the period from July 1, 2019 until December 31, 2021; |
ii) | reduce the previous progressively increasing dividend payment default rate that was 1.30 times the rate payable on the Series A Preferred Shares on the date preceding such payment to a fixed dividend payment default rate that is 1.30 times the base dividend payment rate; |
iii) | increase the redemption price of the Series A Preferred Shares to $30 from $25 per share in case that the Company exercises its current option to redeem the Series A Preferred Shares, in whole or in part, with cash; and |
iv) | increase the liquidation preference from $25 to $30 per Series A Preferred Share. |
8. | Equity Capital Structure (continued): |
Financial Instruments and Fair Value Disclosures: |
◾ | Cash and cash equivalents, restricted cash, |
◾ | Long-term debt:The |
Commitments and contingencies: |
10. | Commitments and contingencies (continued): |
(a) | Commitments under Contracts for BWMS Installation |
(b) | Commitments under long-term lease contracts |
Twelve-month period ending December 31, | Amount | |||
2022 | $ | 25,772,380 | ||
Total | $ | 25,772,380 |
11. | Earnings/ (Loss) Per Share: |
11. | Earnings/ (Loss) Per Share (continued): |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||
2019 | 2020 | 2021 | ||||||||||
Net income/(loss) and comprehensive income/(loss) | $ | 1,088,149 | $ | (1,753,533 | ) | $ | 52,270,487 | |||||
Less: Cumulative dividends on Series A Preferred Shares | (372,022 | ) | 0 | 0 | ||||||||
Plus: Gain on extinguishment of preferred shares pursuant to the Series A Preferred Stock Amendment Agreement, net of expenses | 112,637 | 0 | 0 | |||||||||
Less: Deemed dividend on Series A Preferred Shares | 0 | 0 | (11,772,157 | ) | ||||||||
Net income/(loss) and comprehensive income/(loss) available to common shareholders | 828,764 | (1,753,533 | ) | 40,498,330 | ||||||||
Weighted average number of common shares outstanding, basic | 266,238 | 6,773,519 | 83,923,435 | |||||||||
Earnings/(Loss) per common share, basic | 3.11 | (0.26 | ) | 0.48 | ||||||||
Plus: Dilutive effect of warrants | 0 | 0 | 1,409,293 | |||||||||
Weighted average number of common shares outstanding, diluted | 266,238 | 6,773,519 | 85,332,728 | |||||||||
Earnings/(Loss) per common share, diluted | $ | 3.11 | $ | (0.26 | ) | $ | 0.47 |
12. | Vessel Revenues: |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||
2019 | 2020 | 2021 | ||||||||||
Time charter revenues | $ | 5,967,772 | 12,487,692 | 111,900,699 | ||||||||
Voyage charter revenues | 0 | 0 | 15,002,012 | |||||||||
Pool revenues | 0 | 0 | 5,146,999 | |||||||||
Total Vessel revenues | $ | 5,967,772 | $ | 12,487,692 | $ | 132,049,710 |
Vessel Revenue (continued): |
13. | Vessel Operating and Voyage Expenses: |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||
Vessel Operating Expenses | 2019 | 2020 | 2021 | |||||||||
Crew & crew related costs | $ | 1,396,477 | 3,753,578 | 21,532,311 | ||||||||
Repairs & maintenance, spares, stores, classification, chemicals & gases, paints, victualling | 868,915 | 2,314,260 | 9,828,139 | |||||||||
Lubricants | 153,969 | 429,967 | 2,375,901 | |||||||||
Insurances | 189,781 | 507,885 | 3,126,169 | |||||||||
Tonnage taxes | 50,553 | 131,674 | 592,701 | |||||||||
Other | 143,296 | 310,075 | 1,748,250 | |||||||||
Total Vessel operating expenses | $ | 2,802,991 | $ | 7,447,439 | $ | 39,203,471 |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||
Voyage expenses | 2019 | 2020 | 2021 | |||||||||
Brokerage commissions | $ | 46,708 | 158,538 | 1,733,639 | ||||||||
Brokerage commissions- related party | 40,471 | 29,769 | 1,671,145 | |||||||||
Port & other expenses | 46,100 | 173,645 | 4,520,584 | |||||||||
Bunkers consumption | 87,760 | 321,252 | 7,742,450 | |||||||||
Loss/(Gain) on bunkers | 40,140 | (98,499 | ) | (2,717,035 | ) | |||||||
Total Voyage expenses | $ | 261,179 | $ | 584,705 | $ | 12,950,783 |
14. | General and Administrative Expenses: |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||
2019 | 2020 | 2021 | ||||||||||
Audit fees | $ | 119,535 | $ | 129,420 | $ | 265,744 | ||||||
Chief Executive and Chief Financial Officer and directors’ compensation | 12,000 | 29,000 | 48,000 | |||||||||
Other professional fees | 247,242 | 572,533 | 1,752,566 | |||||||||
Administration fees-related party (Note 3(c)) | 0 | 400,000 | 1,200,000 | |||||||||
Total | $ | 378,777 | $ | 1,130,953 | $ | 3,266,310 |
14. | General and Administrative Expenses (continued): |
15. | Interest and Finance Costs: |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||
2019 | 2020 | 2021 | ||||||||||
Interest on long-term debt | $ | 47,585 | $ | 668,152 | $ | 2,028,676 | ||||||
Interest on long-term debt – related party (Note 3 (b)) | 162,500 | 305,000 | 204,167 | |||||||||
Interest on convertible debt – non cash | 0 | 57,773 | 0 | |||||||||
Amortization and write-off of deferred finance charges | 6,628 | 599,087 | 414,629 | |||||||||
Amortization and write-off of convertible notes beneficial conversion features | 0 | 532,437 | 0 | |||||||||
Other finance charges | 5,450 | 27,128 | 207,526 | |||||||||
Total | $ | 222,163 | $ | 2,189,577 | $ | 2,854,998 |
16. | Income Taxes: |
17. | Segment Information: |
Year ended September 30, | Three months ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||
2018 | 2018 | 2019 | 2020 | |||||||||||||
Net income/(loss) and comprehensive income/(loss) | $ | 980,938 | $ | 276,442 | $ | 1,088,149 | $ | (1,753,533 | ) | |||||||
Less: Cumulative dividends on Series A Preferred Shares | (1,646,775 | ) | (992,745 | ) | (372,022 | ) | — | |||||||||
Plus: Gain on extinguishment of preferred stock pursuant to the Series A Preferred Stock Amendment Agreement, net of expenses | — | — | 112,637 | — | ||||||||||||
Net income/ (loss) and comprehensive income/ (loss) available to common shareholders | (665,837 | ) | (716,303 | ) | 828,764 | (1,753,533 | ) | |||||||||
Weighted average number of common shares outstanding, basic and diluted | 2,400,000 | 2,400,000 | 2,662,383 | 67,735,195 | ||||||||||||
(Loss)/Earnings per common share, basic and diluted | $ | (0.28 | ) | $ | (0.30 | ) | $ | 0.31 | $ | (0.03 | ) |
Year ended September 30, | Three months ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||
Vessel Operating Expenses | 2018 | 2018 | 2019 | 2020 | ||||||||||||
Crew & crew related costs | 983,985 | 239,610 | 1,396,477 | 3,753,578 | ||||||||||||
Repairs & maintenance, spares, stores, classification, chemicals & gases, paints, victualling | 415,306 | 124,354 | 868,915 | 2,314,260 | ||||||||||||
Lubricants | 95,835 | 19,750 | 153,969 | 429,967 | ||||||||||||
Insurances | 133,090 | 31,869 | 189,781 | 507,885 | ||||||||||||
Tonnage taxes | 40,345 | 8,583 | 50,553 | 131,674 | ||||||||||||
Other | 59,209 | 8,378 | 143,296 | 310,075 | ||||||||||||
Total Vessel operating expenses | $ | 1,727,770 | $ | 432,544 | $ | 2,802,991 | $ | 7,447,439 |
Year ended September 30, | Three months ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||
Voyage expenses | 2018 | 2018 | 2019 | 2020 | ||||||||||||
Brokerage commissions | 90,194 | 14,375 | 87,179 | 188,307 | ||||||||||||
Port & other expenses | 57,042 | 5,181 | 46,100 | 173,645 | ||||||||||||
(Gain)/loss on bunkers | (109,863 | ) | — | 127,900 | 222,753 | |||||||||||
Total voyage expenses | $ | 37,373 | $ | 19,556 | $ | 261,179 | $ | 584,705 |
Year ended September 30, | Three months ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||
2018 | 2018 | 2019 | 2020 | |||||||||||||
Audit fees | $ | 91,700 | $ | 20,000 | $ | 119,535 | $ | 129,420 | ||||||||
Chief Executive and Chief Financial Officer and directors’ compensation | 12,000 | 3,000 | 12,000 | 29,000 | ||||||||||||
Other professional fees | 5,533 | (46 | ) | 247,242 | 572,533 | |||||||||||
Administration fees-related party | - | - | - | 400,000 | ||||||||||||
Total | $ | 109,233 | $ | 22,954 | $ | 378,777 | $ | 1,130,953 |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||
Dry bulk segment | Dry bulk segment | Dry bulk segment | Aframax/LR2 tanker segment | Handysize tanker segment | Total | |||||||||||||||||||
- Time charter revenues | $ | 5,967,772 | $ | 12,487,692 | $ | 102,785,442 | $ | 9,115,257 | $ | 0 | $ | 111,900,699 | ||||||||||||
- Voyage charter revenues | 0 | 0 | 0 | 15,002,012 | 0 | 15,002,012 | ||||||||||||||||||
- Pool revenues | 0 | 0 | 0 | 2,442,144 | 2,704,855 | 5,146,999 | ||||||||||||||||||
Vessel revenues, net | $ | 5,967,772 | $ | 12,487,692 | $ | 102,785,442 | $ | 26,559,413 | $ | 2,704,855 | $ | 132,049,710 | ||||||||||||
Voyage expenses (including charges from related parties) | (261,179 | ) | (584,705 | ) | (1,891,265 | ) | (11,003,925 | ) | (55,593 | ) | (12,950,783 | ) | ||||||||||||
Vessel operating expenses | (2,802,991 | ) | (7,447,439 | ) | (26,841,600 | ) | (9,776,724 | ) | (2,585,147 | ) | (39,203,471 | ) | ||||||||||||
Management fees to related parties | (212,300 | ) | (930,500 | ) | (4,890,900 | ) | (1,433,950 | ) | (419,900 | ) | (6,744,750 | ) | ||||||||||||
Depreciation and amortization | (897,171 | ) | (1,904,963 | ) | (10,528,711 | ) | (3,087,764 | ) | (746,353 | ) | (14,362,828 | ) | ||||||||||||
Provision for doubtful accounts | 0 | (37,103 | ) | (2,483 | ) | 0 | 0 | (2,483 | ) | |||||||||||||||
Segments operating income/(loss) (1) | $ | 1,794,131 | $ | 1,582,982 | $ | 58,630,483 | $ | 1,257,050 | $ | (1,102,138 | ) | $ | 58,785,395 | |||||||||||
Less: Unallocated corporate general and administrative expenses | (510,868 | ) | (1,130,953 | ) | 0 | 0 | 0 | (3,266,310 | ) | |||||||||||||||
Total consolidated operating income/(loss) | $ | 1,283,263 | $ | 452,029 | $ | 58,630,483 | $ | 1,257,050 | $ | (1,102,138 | ) | $ | 55,519,085 |
(1) |
Year ended September 30, | Three months ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||
2018 | 2018 | 2019 | 2020 | |||||||||||||
Interest on long-term debt | $ | - | $ | - | $ | 47,585 | $ | 668,152 | ||||||||
Interest on long-term debt – related party (Note 3 (c)) | - | - | 162,500 | 305,000 | ||||||||||||
Interest on convertible debt – non cash (Note 6) | - | - | - | 57,773 | ||||||||||||
Amortization and write-off of deferred finance charges | - | - | 6,628 | 599,087 | ||||||||||||
Amortization and write-off of convertible notes beneficial conversion features | - | - | - | 532,437 | ||||||||||||
Other finance charges | 3,393 | 519 | 5,450 | 27,128 | ||||||||||||
Total | $ | 3,393 | $ | 519 | $ | 222,163 | $ | 2,189,577 |
Year Ended December 31, 2020 | Year Ended December 31, 2021 | |||||||
Dry bulk segment | $ | 67,387,635 | $ | 314,407,704 | ||||
Aframax tanker segment | 0 | 104,953,507 | ||||||
Handysize tanker segment | 0 | 19,093,379 | ||||||
Cash and cash equivalents (1) | 6,882,398 | 23,950,795 | ||||||
Prepaid expenses and other assets (1) | 101,322 | 508,057 | ||||||
Total consolidated assets | $ | 74,371,355 | $ | 462,913,442 |
Subsequent Events: |
(a) | Delivery of the Magic Callisto: On January 4, 2022, the Company’s wholly owned subsidiary, Mickey, pursuant to a purchase agreement entered into on December 17, 2021, took delivery of the Magic Callisto, a Japanese-built Panamax dry bulk carrier acquired from a third-party in which a family member of Petros Panagiotidis had a minority interest. The vessel was purchased for $23.55 million. The terms of the transaction were negotiated and approved by a special committee of disinterested and independent directors of the Company. |
(b) | Entry into $55.0 million financing: On January 12, 2022, the Company entered into a $55.0 million senior secured term loan facility with Deutsche Bank AG, through and secured by 5 of the Company’s dry bulk ship-owning subsidiaries, those owning the Magic Starlight, Magic Mars, Magic Pluto, Magic Perseus and the Magic Vela, and guaranteed by the Company. This facility has a tenor of five years, bears interest at a margin over adjusted SOFR per annum andcontains a standard security package including a first preferred cross-collateralized mortgage on the vessels owned by the borrowers, pledge of bank accounts, charter assignments, shares pledge, a general assignment over the vessel’s earnings, insurances, and any requisition compensation in relation to the vessel owned by the borrower, and managers’ undertakings and is guaranteed by the Company.Pursuant to the terms of this facility, the borrowers are subject to (i) a specified minimum security cover requirement, which is the maximum ratio of the aggregate principal amounts due under the facility to the aggregate market value of the mortgaged vessels plus the value of the dry-dock reserve accounts referred to below and any additional security, and (ii) to certain minimum liquidity restrictions requiring us to maintain certain blocked and free liquidity cash balances with the lender, to maintain and gradually fund certain dry-dock reserve accounts in order to ensure the payment of any costs incurred in relation to the next dry-docking of each mortgaged vessel, as well as to certain customary, for this type of facilities, negative covenants. Moreover, the facility contains certain financial covenants requiring the Company as guarantor to maintain (i) a ratio of net debt to assets adjusted for the market value of the Company’s fleet of vessels, to net interest expense ratio above a certain level, (ii) an amount of unencumbered cash above a certain level and, (iii) the Company’s trailing 12 months EBITDA to net interest expense ratio not to fall below a certain level. The loan was drawn down in full in 5 tranches on January 13, 2022. |